The scandal of PFI: invest just £100 ... and make £89m profit from the taxpayer

heraldscotland staff

Published on 17 May 2008

By Rob Edwards

THE astonishing profits forecast for institutions and individuals who invest in the UK government private finance initiative (PFI) projects are revealed today in a Sunday Herald investigation.

Equity of just £100 invested in rebuilding Hairmyres Hospital in East Kilbride is predicted to earn £89 million in dividends over 30 years.

And £500,000 of equity in the new Edinburgh Royal Infirmary is expected to earn £168m in dividends.

The revelations are gleaned from thousands of papers released under freedom of information laws.

They have provoked fury from critics of the PFI schemes.

Alex Neil, a member of the Scottish government's finance committee, said: "PFI has been a total rip-off of the taxpayer and one of the biggest cons every perpetrated. It's morally criminal that this information has been deliberately hidden for years."