SCOTTISH Labour leadership candidate Neil Findlay MSP announced radical plans yesterday to wipe out the public-sector debt created by dodgy privateering deals which would return £12 billion to front-line services.

The measures would end the huge financial burdens placed on local authorities, NHS boards and other public-sector bodies from private finance initiative (PFI) and non-profit distribution (NPD) debts, he said.

Mr Findlay said that through buying back and refinancing the entire Scottish PFI and NPD debt - currently standing at around £35.3bn - he could save more than £12bn over the lifetime of the contracts.