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FINANCE OF INVESTMENT OF INFRASTRUCTURE THROUGH PUBLIC BORROWING |
23.10.02 |
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20 signatures |
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That this House notes that the total capital value of all PFI/PPP projects signed by 31st July was £22.5 billion and that had this been raised by public borrowing, the public sector net debt would increase by 2 per cent. to just over 32 per cent. of GDP; further notes that adding on the scheduled increase in public borrowing of 0.5 per cent. of GDP by 2005-06 as detailed in the April 2002 Budget would still leave the UK with public debt of less than 33 per cent. GDP; further notes that on the European basis for measuring national debt the UK's is 39 per cent. compared with a European average of 63 per cent. and that whilst borrowing in some European countries is clearly too high, the UK's is too low, especially if it means the public sector has to pay unnecessarily high charges for borrowing carried out on its behalf by private companies; further notes the profound misgivings about the PFI revealed by the Association of Chartered Certified Accountants survey; refutes the argument that the only way to provide the necessary increases in investment in the national infrastructure is through PFI; and urges the Government to fund public investment by a prudent increase in public borrowing.
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