asked Her Majesty's Government:

What arrangements they will provide for payments to private finance initiative (PFI) contractors in those cases in which assets provided within a PFI scheme cease to be used for their intended purpose.[HL1417]

In the event of a change in asset use without any consequential effects for actual asset provision or service requirements from the PFI contractor, unitary charge payments will continue to be paid as set out originally between the public authority and the PFI contractor. In other cases the public authority retains the right to change its requirements from the PFI contractor as a consequence of significant changes to the public service it is providing from the PFI scheme. This could result in a contract variation or in exceptional circumstances mean that the authority needs to terminate the contract through the authority voluntary termination (AVT) provisions in the standard PFI contract.

HM Treasury's standardisation of PFI contracts (SoPC) guidance sets out further approaches to be considered for payment arrangements in such circumstances. This guidance is available on the HMT PPP website at www.hm-treasury.gov.uk/documents/public_private_partnerships/key_documents/ppp_keydocs_index.cfm.