Like PFI People’s Quantitative Easing funds essential public investment. Like PFI it does so without increasing the deficit. Like PFI it does so without increasing government debt.
And then there’s the key difference. It’s at least ten times cheaper than PFI. And it’s wholly under state control. And not a single banker gets richer as a result of it.
Some people have said People’s Quantitative Easing is just a trick. Maybe it is. But it’s a vastly better trick than the PFI one that’s been used by Conservative and Labour governments for the last twenty years. What I’ve done is improve the trick. Now it works. Now it’s affordable. And this time there is no rich banker in the middle of.
It’s not actually the bankers that get rich off PFI. It’s the holders of the equity slice that do, assuming they deliver on time and to budget (and they lose everything if they don’t, as with the Channel Tunnel).
And that’s Ritchie’s trick. He’s eliminated the equity slice, meaning that there’s no one to benefit from it. And there’s also no one worrying about coming in on time and to budget either. You know, the reason there are equity slices in the first place?
It’s not all that great a trick to be honest.