Union claims PFI concessions victory

Public sector union Unison has welcomed what it claims are concessions from Treasury officials on the use of PFI schemes.

General secretary Dave Prentis said on Monday that it had reached an agreement with the government on the use of Private Finance Initiative funding schemes after lengthy talks.

The country's largest union claims chancellor Gordon Brown's department has offered reassurances that staff working for the public sector but employed by private companies will not receive worse pay or conditions.

And it said local authorities will no longer receive incentives to use PFI for investment projects compared with other forms of capital.

"The Treasury announcement is a welcome breakthrough and will have a significant effect on the way that PFI is implemented in the future," Prentis said.

"It will go a long way to introducing a level playing field, allowing local authorities and health trusts to pursue alternative means of financing.

"The government has agreed that PFI should not be at the expense of the workforce and that soft services do not have to be included in PFI schemes.

"In future they will not allow any proposals to cut the pay and conditions of either transferred staff or new joiners to be taken into account in the key value for money assessment needed before a PFI scheme can go ahead. This will come as an enormous relief to our members who have consistently lost out when it comes to PFI schemes."