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The demise of Carillion “created an unprecedented situation" for the Royal Liverpool Hospital

A Private Financing Initiative hospital contract worth £335 million ($441 million; €374.8 million) has been terminated and brought into public ownership following the collapse of Carillion. The demise of Carillion “‘created an unprecedented situation with numerous complex legal and commercial issues’ for the Royal Liverpool Hospital, the Royal Liverpool and Broadgreen University Hospitals Trust said in a statement. The PFI contract will now enter a ‘managed termination process’ whereby the concession company will hand over its contracts for construction, supply chain and facilities management to the local NHS trust over the next few months so construction can be completed.”

The failures of privatization have become undisguisable

The failures of privatization “have long been evident. But in 2018, with the renationalization of Birmingham Prison and the East Coast Main Line, they have become undisguisable.” In March 2011, officials boasted that the privatization of the prison to G4S would “would deliver ‘innovation, efficiency and better value for money’ without ‘compromising standards.’ Seven years later, such lofty ambitions appear risible.” Nor are problems confined to Birmingham. “Britain's ‘inhumane’ prisons are crumbling, with a backlog of 80,000 repair jobs. (…) Latest figures show around a third of repairs are contracted out to private firm Amey. Almost all the rest were under Carillion and now handled by Government. Shadow Justice Secretary Richard Burgon called it a ‘disaster’ of privatization. He said: ‘It's the disastrous effect of the Tory privatization obsession. The contract for maintenance works, worth hundreds of millions, failed to deliver savings promised.’”

Source: www.newstatesman.com

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