Private finance initiatives (PFIs) have been widely encouraged by the Government as a way of getting new projects built quickly and efficiently by the private sector.

In Brighton, a PFI contract has been responsible for starting work on the central library in Jubilee Street, a project which had proved impossible to get going by any other means for 50 years.

But there is a live now, pay later aspect of even the best PFI scheme, such as the Jubilee Street project, which has been widely praised.

Brighton and Hove City Council will have to pay over many years a sum which could be far higher than if it had built the library itself.

Great care has to be taken with PFI schemes in case anything goes wrong and this has now happened with Comart, the East Brighton College of Media Arts.

The council is asking people whether the college should close or carry on in a different form.

At best, it will have far fewer pupils than anticipated in the PFI contract and at worst it will not be there at all. So far, officials have been cautious over the figures but it is becoming obvious large sums will be involved and the council will be responsible for them.

This experience should make officials and councillors extremely wary before entering into other PFI contracts for schemes, however worthy.

Senior Labour figures should also recall how wary they were of PFI schemes when the previous Conservative government was promoting them.