The solution to the PFI system is apparently:
My answer? Compulsory repurchase at undeveloped land value paid with gilts that are not saleable for a significant period. And if that seems harsh, so be it: this is about reclaiming the common good from those who have sought to destroy it.
That is, the last government (and the one before, the one before that, indeed, I think we would be going back five or six elections since this was introduced) emcouraged people to purchase assets from the State. Hand over your money and you get this lovely set of tax offices for example. Maybe it was a good contract, maybe it was a bad one. But it was a contract which the government of the day actively encouraged and which was entirely legal under the laws of the land at that time.
These should now be torn up. The money that was paid for buildings, anything that has been spent on improving the site, this will simply be confiscated. There are a number of ways to describe this, from state theft through to tyranny.
It\’s most certainly not upholding the rule of law, is it? Nor certainty of contract?
And even if the PFI deals were so entirely screwed that it is worth renegotiating them this does not mean that doing so unilaterally would be worth the British Government entirely losing its reputation for keeping its word. One only need to look at the interest rates on government bonds of countries which have a reputation of weaselling out of obligations as against those who do not to see the value of being thought at least mildly honest.
As an example, I would give you the diference in yields recently on Greek Government bonds issued under Greek law and those issued under English law. That\’s exactly the value that straight dealing with contracts has.