Research shows 鈥榖ig four鈥� pocketed more than 拢300m since 2010 after selling BSF schools
Some of the nation鈥檚 biggest contractors have been singled out for criticism after research revealed they are making multi-million pound profits from selling on Private Finance Initiative (PFI) contracts.
Balfour Beatty, Carillion, Interserve and Kier benefited by a combined total of more than 拢300m over the past four years, with Balfour Beatty alone making a reported 拢188.9m.
Research conducted by found that companies were able to double their profits by selling on PFI projects, such as hospitals and schools, part way into their 25-year lifespans, and that stock-market filings and company documents showed Carillion had made 拢12.2m, Kier 拢20.7m and Interserve 拢90m.
The paper said Balfour Beatty had recently sold on - or 鈥渇lipped鈥� - the University Hospital of North Durham and seven schools in Knowsley, generating a gain of 拢51m.
It said that the schools funding represented a doubling of Balfour鈥檚 original 拢19m investment.
Margaret Hodge, who chairs the Commons Public Accounts Committee, said the profits were scandalous and showed the public had been 鈥渞ipped off鈥�, but conceded that the last Labour government 鈥� of which she was a member 鈥� had made mistakes on PFI.
鈥淚鈥檓 afraid we got it wrong,鈥� she said.
鈥淚 was a supporter at the time but I have completely gone off the whole concept. We got seduced by PFI.鈥�
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