To ask the Chancellor of the Exchequer what assessment his Department has made of the extent to which risk is transferred to the private sector in private finance initiative transactions where the Government continues to hold a significant shareholding in a company to whom the risk is being transferred; and if he will make a statement. (106879)

Chapter 7 (paragraph 7.46) of the policy document “PFI: Strengthening Long Term Partnerships” sets out the Government’s position in relation to public sector equity in risk capital.

The full document is available at:

<http://www.hm-treasury.gov.uk/budget/budget_06/other_documents/bud_bud06_odpfi.cfm>.

To ask the Chancellor of the Exchequer what reviews the Government have (a) undertaken and (b) commissioned on the cost-effectiveness of (i) private finance initiative projects, (ii) public-private partnerships and (iii) consultancy policy. (107132)

The Government have undertaken and commissioned two major reviews of the cost effectiveness of private finance initiative projects. These are:

1. PFI: Meeting the Investment Challenge (July, 2003) available at <http://www.hm-treasury.gov.uk/documents/enterprise_and_productivity/PFI.cfm>

2. PFI: Strengthening Long Term Partnerships (March, 2006), available at <http://www.hm-treasury.gov.uk/budget/budget_06/other_documents/bud_bud06_odpfi.cfm> .

The National Audit Office has also conducted a number of investigations into the private finance initiative, available at:

http://www.nao.org.uk/.

The Government will, from time to time, undertake reviews of their various public-private partnership agreements. These are a matter for individual Departments, and their nature depends on the specific agreement in place.

The Office of Government Commerce has issued advice to Departments on the tendering process for consultancy support. This is available on their website:

www.ogc.gov.uk.