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PFI Schools: Millions in Dividends, Crumbling Legacy?
9 Jan
Summary
- Innisfree's PFI deals have yielded at least £130m in dividends.
- Concerns raised over unfinished work and contract quality in Stoke.
- Innisfree declined to reinvest funds into the struggling PFI company.
Questions are being raised about the legacy of PFI school contracts, with specific concerns highlighted in Stoke-on-Trent. Academy chief executives have shared evidence of unfinished work and the long-term impact on schools. The financial aspects are complex due to intricate company structures, but analysis suggests Innisfree, a major UK infrastructure investor with significant PFI projects, and its associated entities have profited substantially.
Innisfree founder David Metter, a vocal proponent of PFI's value, and his family's companies appear to have gained at least £130 million in dividends from various PFI investments. However, the exact portion derived from the Stoke-on-Trent contract remains unclear. When approached, Innisfree declined to reinvest funds back into the PFI company, TSSL, citing commercial contract terms.
While TSSL directors and subcontractor Equans maintain that schools were maintained to contract standards and work was completed responsibly, concerns about PFI contracts ending have persisted since at least 2021. A parliamentary committee noted that academy schools might be left to fund outstanding repairs, with investors potentially paying high dividends and facing limited recourse.
