Blair did continue and expand PFI projects but that was a natural progression for him because he and Brown went along with the notion of soft touch financial regulation, the pursuance of private finance initiatives and the ditching of many of the aspirations and associations of "Old Labour".
I, and many on the left of the Labour Party, did not think the PFI arrangements were a good move. In Blair's defence, I suppose it could be argued that the Conservatives had left schools and hospitals in such a terrible state that something had to be done. Our right wing media would have relished the Labour Party using public money to rebuild hospitals and schools and would have loudly accused it of reckless financial management. However, as a former Bank of England officer said on Question Time the other week, it would have been far more sensible for the then Labour government to have borrowed at low rates to build new schools and hospitals, than to saddle the country with extremely uneconomic and inefficient PFI deals, for which we continue to pay outrageous sums of money.
It is those on the right of the Labour Party that have championed these sorts of arrangements and those on the left of the party who distrusted and did not want them.
Whatever is felt regarding Blair's and Brown's decision to enter into PFI arrangements, it was not the Labour Party who sold off in their entirety the country's water and energy to private companies.