Monday, 7 May 2007
Paying for failure
The Department of Health appears to think that the poor private companies that fail to win lucrative PFI contracts deserve compensation for their failure to the tune of 2% of the total contract costs.
The telegraph covered this story on Sunday and pointed out that this scheme is already up and running on a trial basis in Bristol for a 374 million pound hospital. In this case the runner-up may be paid around 6 million pounds, while the third placed company will most likely be paid too.
It is simply astounding that the DoH thinks that it is appropriate to pay off these companies for merely for taking part. This is when it is forecast that PFI schemes are set to waste the tax payer several billion pounds over the next few years.
It is yet more evidence that the DoH is run by incompetents with no discernible grip on reality, and they are throwing our cash on the bonfire.