Britannia Radio

WE TOLD YOU OF THIS, SIX TO 12 MONTHS AGO.

What this programme doesn't discuss; 

that the Private Companies then float their shares on the AIM Markets 

and make fortunes at the tax-payers expense. 

Also, the requirements to bring the PFI Liabilities of the UK Government,

back onto Public Government Borrowings,

 is part of the BASEL ACCORD 1 &2,

  as well as the requirements of the IFRS.

Tuesday, 23 June 2009 14:07 UK TUESDAY, 23 June 2009 CLICK TO LISTEN Treasury 'manipulating' PFI books File on 4 hears claims that the government is manipulating accountancy rules to boost PFI funding

Treasury 'manipulating' PFI books

The Government is manipulating new accountancy rules to favour future Private Finance Initiative (PFI) schemes, the BBC has been told. Most new hospitals are being funded through PFI New international accounting standards which Britain is adopting this year mean that, for the first time, most existing PFI schemes will be put onto the balance sheets of government departments. But new guidelines issued by the Treasury earlier this month are alleged to be a deliberate way of avoiding treating PFI projects in the same way in the future spending budgets of government departments. Nobody at the Treasury was available for comment. PFI critics have long claimed that because most PFI projects have so far been off the books of government departments, investment decisions have been skewed towards PFI as a way reduce the apparent size of government borrowing. Distorted choices David Heald, professor of Accountancy at the University of Aberdeen, told BBC File on 4, "In the past we've had evidence that the choice of actual hospital and school schemes has been distorted by the question of whether something should be on the balance sheet." He added: "Indeed it was made clear to hospitals and local authorities that they wouldn't get approvals for PFI schemes if they didn't comply. FIND OUT MORE Listen to File on 4, BBC Radio 4 2000 BST, Tuesday 23 June 2009, repeated 1700, Sunday 28 June 2009. Listen on iPlayer Download the podcast "If these projects are good value for money that is fine but if they've been driven solely by accounting treatment there's sufficient evidence to worry if they are good value for money." Professor Heald says the Treasury's new accountancy guidelines amount to "manipulation". "The very clear motive for the budgeting treatment is not to show PFIs as being part of public spending....the only reason one can say why it is being done is to reduce the apparent size of public spending and the apparent size of public debt," he added. Professor Heald told the BBC he believed the Treasury's decision to be a "mistake". As a result of the Treasury's new policy he warned: "We are going to get a new round of criticism about dishonest government accounting."