If there is enough profit to apply a windfall tax, doesn't that show that PFI is a bad deal for the taxpayer?
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Originally posted by E10 Rifle View PostBut how much would such a windfall tax bring in, if part of the problem is that PFI firms' profits have been squeezed in the age of austerity? Also, it strikes me as an inefficient circulation of money – government splurges money to PFI firm, gets some of it back at a later date once tax returns have been filed.
Feels like a 1997 answer to a 2017 problem, an apt description of the MP who proposed it.
I'd rather see them buy the worst ones out altogether though GY isn't sure that can be done for all that many.
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Originally posted by Snake Plissken View PostIf there is enough profit to apply a windfall tax, doesn't that show that PFI is a bad deal for the taxpayer?
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Originally posted by Ginger Yellow View PostIt can be done, it's just not going to save all that much money. At least for the bond based ones, which tend to be the big ones. It could still be worth doing for operational or ideological reasons.
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Originally posted by ursus arctos View PostThat is indeed very odd, GY.
I'm not familiar with the PFI details, but Spanish infrastructure in general is an unmitigated disaster.
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Originally posted by ursus arctos View PostConsider the cases of the ghost airports (and links therein)
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Originally posted by Ginger Yellow View PostIt occurs to me that if you did enough government bond issuance to fund all these buyouts, it might push Gilt yields out to the point where a Spens call wouldn't be all that expensive.
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I'm not saying you would. Just that if you were planning on doing the buyouts anyway, the Spens issue might not be quite as big as it first appears based on current Gilt yields. But in practice it's not a realistic prospect. I doubt the government would do something that would push out yields by the 5% or whatever it would take to neutralise the Spens premium.
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- Mar 2008
- 29939
- An oasis in the middle of Somerset
- Bath City FC; Porthcawl RFC;Wales in most things.
- Fig roll - deal with it.
Apologies if this has already been referred to but I didn't see this NAO report get a huge amount of coverage.
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