Public Finance Initiatives (PFI) were developed during the John Major government and expanded under Labour as a way of funding public infrastructure projects using private capital.
Misgivings were expressed at an early stage, mainly by the Labour opposition which changed its tune when it came to power under Tony Blair, embracing the scheme as a way of building and maintaining schools, hospitals and other public facilities.
Supporters argued that handing projects over to the private sector ensured greater efficiencies compared with public sector management.
However, it is an idea that seems to have few champions in the current financial climate with concerns raised over the huge costs that have to be repaid over the lifetime of a contract.
This is certainly the case in Northern Ireland where it has emerged that PFI and public-private partnership (PPP) loans to build 20 schools are going to cost vastly more than the initial price of construction.
According to figures obtained by the Irish News, the cost of building the schools was £374 million but taxpayers will end up paying back almost £1.5 billion.
Even allowing for ongoing maintenance costs and the high interest rates which were typical at the time, it is difficult to argue that this level of repayment represents good value for money.
Indeed, this sort of financial commitment looks even worse in our present circumstances with public spending under severe strain and many services facing wide-ranging cuts.
Questions can be asked about the contracts drawn up at the time and what consideration was given to the soaring cost of repayments.
Given the difficulties facing the public purse it is also fair to ask if the terms of these loans can be renegotiated.
The Department of Education now seems less enthusiastic about such arrangements, which is understandable.
However, it does need to explain in greater detail what impact these long term loans are having on the current education budget.
