This was always one of the goals of People’s QE, which was one of the core pillars of Corbynomics. Two years ago this was at the centre of Corbyn’s appeal when he became party leader. As its author I am delighted to see that it still survives. And I wholeheartedly support this use of it.
When saying so I also note that the Nuffield Trust that said the cost of doing this would be the gross revenues of the contracts is talking utter nonsense: the compensation due is at most for the discounted value of the contracts taking into account the inherent risks within that income stream.
Oh, so net present value, discounting, does in fact work then? The value of a company is the NPV, the value of a contract is the NPV…..gosh, what stump thinking!
From the newspaper:
In response to claims the plan would be prohibitively expensive, a Labour spokesman said: “Shareholders will be compensated in the form of government bonds, exchanged for shares. Parliament will assess the appropriate level of compensation at the point at which contracts are brought back in house”.
So the PFI contracts will be brought back right to where they should be, on the national debt then? Isn’t that going to be wondrous, rather constraining future actions I think, no?