RAF accused over multi-billion Voyager contract

[Persephone]

So..who is responsible for this crappy deal? Did they think it would never get revealed? Did Brown allow it knowing full well he'd be long gone when the numbers are exposed?

RAF accused over multi-billion pound Voyager contract
By Joe Lynam BBC Newsnight
10 May 2012

The RAF may be paying billions of pounds too much for its new, air-to-air refuelling Voyager aircraft, the BBC has discovered.
Contracts seen by Newsnight suggest the 14 planes could have been purchased for £50m each.
Instead the RAF paid £150m for each plane as part of a leasing agreement.
Defence Secretary Philip Hammond defended the contract, but said he would second check the details of the deal.

The Voyager contract is the biggest Private Finance Initiative (PFI) signed by the government and one which both Labour and the current coalition have signed off despite warnings from notable military and political figures.

Air Tanker says the purchasing cost of each aircraft is £152m, but Newsnight has discovered that the MoD could have acquired these aircraft for a fraction of the list price.

http://www.bbc.co.uk/news/uk-18020809

[Listy]

The Voyager contract is the biggest Private Finance Initiative (PFI) signed by the government and one which both Labour and the current coalition have signed off despite warnings from notable military and political figures.

And there is your answer. PFI one of the worst ideas to date.

[Selous]

Sadly, this sort of thing really isn't surprising to me any more.

[Persephone]

Sounds like the deal was an accting trick intended to hide real numbers. But those making the deal were terrible with math and screwed the taxpayers.

[Listy]

Originally Posted by Persephone

Sounds like the deal was an accting trick

That sums up PFI nicely. Officially we had low debt and such, yet could afford everything, because the PFI didn't show up under the debts.

Of Course the only way Private individuals would touch it was if they could see a nice big profit, and so you can see were this is going.
My Other half works in a PFI built hospital, its been open a few months and is already falling to bits. Of course the managing company is charging for repairs Plus the PFI contract. I went for a job the other day, this was under a PFI as well, and the levels of pay were extremely good, all paid for by the PFI.

[Persephone]

How's Royal London faring?

[Persephone]

Parliament aren't rushing to cancel these poorly thought out PFI schemes because friends of some lawmakers are connected with the companies that are getting access to lots of public sector money.

[Listy]

Originally Posted by Persephone

Parliament aren't rushing to cancel these poorly thought out PFI schemes because friends of some lawmakers are connected with the companies that are getting access to lots of public sector money.

Or more likely you'd have to find the money now! A punishingly high sum for cancellation, that's how the Contracts would work most likely.

This way the Cash due date is kicked into the long grass... Its works out like Pay £10 Per year now, for an object worth £5 per year, or pay me £10 billion now.


What I want to know is:
Allot of PFI's are held by the banks, Surely as the banks have been brought out by the Government, can't we just say "Give us the PFI back, and you can have your controlling shares back".

[Persephone]

Originally Posted by Listy

What I want to know is:
Allot of PFI's are held by the banks, Surely as the banks have been brought out by the Government, can't we just say "Give us the PFI back, and you can have your controlling shares back".

Most likely, they will change the name of the scheme so as to pretend it has gone away. Then hopefully, the new scheme will not be as horrendous or as badly thought out as the previous scheme