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Private Finance Initiative

Volume 403: debated on Thursday 10 April 2003

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To ask the Chancellor of the Exchequer if he will make a statement on the expected saving to public funds from the private finance initiative schemes due to become operational in 2003. [105718]

PFI extends the scope for cost savings in a variety of ways. For example, by putting substantial levels of private sector capital at risk and requiring companies involved to deliver clear levels of service at a fixed price over the long term, PFI ties payment more closely to performance; safeguards the quality of the service over the life of the contract and better ensures that public assets are delivered on time and to budget.For example, the National Audit Office's recent report, 'PFI: Construction Performance' confirmed that PFI has established an exceptional record in terms of delivery times and price certainty for the public sector. This record represents significant savings to public funds.

To ask the Chancellor of the Exchequer how many PFI contracts his Department or its agencies (a) have with and (b) are being tendered for by (i) Amey plc and (ii) consortia involving Amey plc; what the total value is of those contracts; what the average length is of the contracts or proposed contracts; and what assessment his Department has made of the financial position of Amey plc and the implications for his Department. [108331]

None of the Chancellor's Departments have existing PFI contracts or tenders involving Amey Plc.