further education - the cost of pfi
WORKERS, OCT 2005 ISSUE
IN 2002 NEWBURY College in Berkshire became the first to relocate as a result of a PFI investment — one of the largest in a British further education college. At the time, the college's governors said that the only way it could raise money was by using a PFI to move to a greenfield site.
Now, according to a consultant's report seen by Workers, the college is running at a deficit, and the principal reason for the deficit...the PFI contract, which, says the report, "will remain a massive financial burden to the college for many years to come".
Given the much higher than expected — and much higher than the British average — premises costs, which are part of the PFI contract and cannot be negotiated, the college has to look at other areas for savings.
A case of out of the frying pan, into the fire?