THERE are some legitimate concerns about the Private Finance Initiative.

Sadly, yesterday's debate at the Labour Party Conference failed to make sufficient reference to these concerns.

The debate offered delegates the opportunity to question the level of care at PFI hospitals, or the standards of classrooms at PFI schools.

Instead, the debate was hijacked by union leaders, working to an agenda of a by-gone age.

In emotive terms which belong in the dim and distant past, they talked about PFI in terms of private-bad, public-good. They talked of City institutions lining their pockets, and fats cats getting fatter.

They talked little of patient care or teaching standards.

They may have won the vote, but they lost the argument.

It is clear that the Labour leadership's defeat over the thorny issue will count for nothing.

Before yesterday's debate ministers made it clear that PFI programmes would go ahead, no matter what conference told them.

And today, the Prime Minister will tell the conference and the people of Britain that not only is PFI here to stay, but that it will be expanded.

Gone are the days when the Labour leader danced to the tune of the union leaders.

That Mr Blair can display open defiance demonstrates how the relationship between the unions and the Labour leadership has been transformed in recent years.

It also demonstrates the paucity of the arguments put forward by the unions in yesterday's debate.

The British people want to see new hospitals and new schools being built. And the vast majority of them are not bothered whether the money for them comes from the private or public sector.

The task facing the Prime Minister now is to justify his faith in PFI by delivering the improvement in public services he has promised.

The case in favour of PFI is not overwhelming. We can cite Wembley Stadium and the Millennium Dome as examples of when private finance and public interest do not go hand in hand.

The onus on Mr Blair's Government is to demonstrate the virtues of PFI and alleviate the concerns.