YOUR columnist (June 7) writes in praise of Private Finance Initiative as a means of building much-needed capital projects, claiming that the use of the private sector is the only way forward.

While it is no surprise to hear this view, it is a mistake to believe that only one route exists for funding capital works.

One has to ask where your columnist has been for the past 10 years given that on numerous occasions we have been told of the economic miracle that we are living through.

This applies to having paid off debt and invested in nuclear submarines and as we are about to renew nuclear power stations (while at the same time denying Iran the same opportunity) not forgetting the Dome (paid out of various sources) there has been a wealth of opportunity available.

The Exchequer is still the most suitable source of borrowing money in the amounts required in order that the interest rate is affordable and the burden on the taxpayer is kept to a minimum.

Given the number of taxes that have been introduced during the lifetime of our present miracle-achieving Government, one wonders whenever we will be eligible to feel the benefits.

Job centres offer agency work while the rate paid is basic minimum, the rate the agency charges is pure profit.

Now the telephone company is charging you to pay your bill unless you agree to pay monthly or by direct debit £4.5 on top of service charges.

Everyone will have read about the postcode drug anomalies this from a National Health Service, as opposed to a health service based on district.

Together with the travel between Blackburn and Burnley for certain services, at a cost, all to our benefit your columnist would have us believe thanks to PFI.

Which by any stretch of the imagination is a millstone around the necks of the populace for years to come, whether it applies to hospitals, schools or roads.

If there has been a real miracle then the Exchequer would be able to afford the cost of construction of these much-needed institutions rather than making the private sector and the stock market richer than they already are.

PETER G GREENWOOD CBE, Rosewood Avenue, Blackburn.