Following the announcement that Ysgol Aberconwy is facing financial difficulty and had to consider making staff redundant to avoid a shortfall, Janet Finch-Saunders, Assembly Member for Aberconwy, has spoken out in anger at the Private Finance Initiatives burdened on three key secondary schools in Conwy.
Janet said:
“Ysgol Aberconwy, Ysgol Dyffryn Conwy, and Ysgol John Bright have been funded by PFI schemes. This is where public sector bodies pay private companies or consortiums to build and manage new facilities.
“There is nothing wrong with private investment, or turning to private capital where there are reasonable rates, however, as I have proved previously, in Wales these schemes offer horrendous value for money.
“Just look at Conwy County Borough Council. The PFI schemes it is lumbered with means that whilst the actual cost of the three schools was £40.7million, the amount payable under the scheme is 330.22% higher, making it £175.1million.
“Evidently, the tax payer have been duped by the Welsh Government who should not have allowed the then Labour led Council to tie such a noose round education providers here. Indeed, we should never be in a situation where cuts to education are being contemplated to accommodate PFI payments.
“Going forward, I will be calling on the Welsh Government to legislate to stop local authorities from being able to enter into these financially crippling PFI contracts as the cost of these are not only being passed on to future generation but now threatening their education”.
Notes
Ysgol Aberconwy faces financial shortfall
School's £250,000 loan to pay private caretaking firm PFI contract gets go-ahead
Welsh taxpayers ‘fleeced’ by rip-off PFI schemes
Written Assembly Question to Alun Davies AM, Cabinet Secretary for Local Government and Public Services:
Will the Cabinet Secretary explain whether the Welsh Government will take steps to stop Local Authorities from entering into high interest rate PFI schemes, and state whether any financial support can be made available to help those public sector bodies facing financial crisis because of existing repayment requirements?