No Profit in PFI changes warning

Carillion warns Scotland over PFI changes

Construction giant Carillion has warned Scotland against pressing ahead with plans to replace the traditional private finance initiative with a non-profit making model.

Robin Herzberg, managing director of Carillion’s private finance division, told the construction press that the new approach “doesn’t sound very attractive”.

The proposals as they stand would not interest a profit-making firm like Carillion, he said.

Longer term, Scotland’s ruling Scottish Nationalist Party wants to ditch PFI in favour of the Scottish Futures Trust, a non-profit making company that would funnel private investment into state projects.

From: Public Private Finance