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    M305 - Public Sector Debt Motion, TSR Socialist PartyThe House recognises the staggering amount of debt that private finance initiatives have created for various public service bodies across the country. This debt continues to place an often insurmountable strain on public bodies and has contributed to or even caused numerous crises in the provision of incredibly important health, social care and education services. The National Audit Office has concluded that PFI schemes massively "increase the cost of finance for public investments relative to what would be available to the government if it borrowed on its own account" and analysis of current contracts suggest that the total cost could reach £301bn despite the total value of the capital initially borrowed amounting to only £54.7bn. The annual servicing of PFI debt will reach a peak of >£10bn by 2017-18. With this in mind, the House calls for a definitive end to the use of private finance initiatives, and for the transfer of PFI liabilities to central government for the reclassification of the previous loans as zero-interest borrowing.

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    Who wrote this?
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    (Original post by O133)
    Who wrote this?
    *Edited*
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    reclassification of the previous loans as zero-interest borrowing.
    Do we have any legal grounds to do this?
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    You cannot change the interest rate to zero, there isn't legal precedent to do so. What Europe did to Cyprus doesn't count as that was illegal by EU law but still went ahead.

    £10bn isn't that much in all honesty, Nay.
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    Aye, the public sector shouldn't be directly funded by the private sector.
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    Having had a think about it, i'd be open to no longer using such initiatives but i can't support what is effectively an illegal default on the interest. The UK is a nation which honours its word.

    How about a deal. Scrap the zero interest nonsense and repay it early or in one lump sum and all we'll ask in return (to show your willing to make the hard financial decisions) is that you reduce foreign aid to emergency spending only . We can argue about paying the rest of the increased deficit in our respective budgets at some point later (though we have made some more savings via a European budget Treaty which was never costed).
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    (Original post by Aph)
    Aye, the public sector shouldn't be directly funded by the private sector.
    So how else can you fund it? Tax receipts aren't enough and with an increase in taxes (which you'd no doubt counter with), there'd be less tax receipts than there are currently which leads to the private sector picking up the slack.
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    (Original post by tehFrance)
    So how else can you fund it? Tax receipts aren't enough and with an increase in taxes (which you'd no doubt counter with), there'd be less tax receipts than there are currently which leads to the private sector picking up the slack.
    Your saying if we raise taxes we get less tax in:erm:

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    Abstain. I like the idea but can't support it

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    (Original post by Aph)
    Your saying if we raise taxes we get less tax in:erm:

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    When taxes rise, high income earners leave... Look at what happened in France, the majority left for London or in a certain actors case, Russia. Raising taxes always ends up losing the country money.
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    (Original post by tehFrance)
    When taxes rise, high income earners leave... Look at what happened in France, the majority left for London or in a certain actors case, Russia. Raising taxes always ends up losing the country money.
    Well if they are going to leave just because we want them to contribute we don't want them.
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    (Original post by Aph)
    Well if they are going to leave just because we want them to contribute we don't want them.
    You may not want them but they're the job/wealth creators and we need them. I know you're young but don't be shortsighted as to the impact that forcing job/wealth creators out of the country, it'll end badly.
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    (Original post by tehFrance)
    You may not want them but they're the job/wealth creators and we need them. I know you're young but don't be shortsighted as to the impact that forcing job/wealth creators out of the country, it'll end badly.
    Why do we need them? If they are going to contribute so little.
    We are forcing them out:zomg: pretty sure they are leaving of their own accord.
 
 
 
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