Abstract
This paper examines the extent to which PFI is a product of a modernisation agenda and its role in furthering it. We define modernisation using an analysis of the UK Government's legislation and pronouncements framing it in the context of New Public Financial Management (Olsen et. al, 1998). The paper uses the example of healthcare to consider recent changes in the procurement and accounting for infrastructure investment. Finally we evaluate the use of PFI in the context of NPFM and the modernisation agenda and consider whether the public sector should provide funding for the infrastructure of the public services.
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