IT APPEARS from your publication that the PFI (Private Finance Initiative) has only just registered as the shame it is. It was a device to remove the capital cost of projects from Treasury's capital expenditure by placing it with the private sector.

It appears as no cost to the Government until the revenue costs become due whereby it is paid for from the revenue account. For anyone who cares to take notice of this ploy, they will immediately see that an exorbitant amount is being charged for rent and services.

Some of us have been pointing this out for the last number of years at both local and national levels. To their ever-dying shame the newly formed Local Government Association have endorsed it fully in all aspects. Even though it impinges on Education, road building and of course on the NHS as the cost will have to be paid for over the next 30 years.

It will be seen over time to lead to the greater privatisation of the most fundamental services as bigger debts accrue, in both education and health services. Already in health, it is possible to see the start of massive debts building up in certain areas of the country, in order to reduce those debts it will lead to massive job cuts and the further restriction of necessary medications.

Establishing a postcode health service where treatment is based on where you live, rather than clinical need.

A certain sign is the fact that PFI schemes are being traded on the stock exchange in order to increase the profitability for the initial investors. This is a clear sign of the excessive profit available from the health service together with education including the much vaunted academies.

One only has to look at the privatisation that has taken place in Blackburn with Darwen, many council services from Highways, Council Tax, bus services, benefits, payroll, IT, architects and property (including housing). All gone to the private sector. Which raises questions over the standing of the officers employed and the councillors who purport to serve the people of the two towns. Service being the operative word.

PETER GREENWOOD CBE, Rosewood Avenue, Blackburn.