§ 31. Mr. Jeremy Corbyn (Islington, North)What assessment he has made of the resource implications of National Audit Office auditing of the use of private finance initiatives in the construction of public buildings. [61372]
§ Mr. Robert Sheldon (Chairman of the Public Accounts Commission)The Commission meets regularly to assess the adequacy of the resources of the National Audit Office. In 1997–98, the National Audit Office produced four reports on private finance initiative projects, all of which were the subject of reports by the Public Accounts Committee. With the continuing and 16 increasing importance of PFI, the Comptroller and Auditor-General will be making further reports in future years.
§ Mr. CorbynWould my right hon. Friend be prepared to authorise a further examination of the use of PFI, and of its long-term costs, in terms of borrowing and repayment for capital building and the loss by local authorities or health authorities of control of the buildings that they own? Does he agree that there is a danger that, in pursuit of short-term objectives, we will saddle future generations with large bills for newly constructed hospitals, schools or other public buildings?
§ Mr. SheldonThere is of course the question of efficiency versus the finance cost, and it should be possible for those in the private sector to meet the extra finance costs by greater efficiency. If they cannot, the justification for the process is largely gone. I understand that the Public Accounts Committee is to publish a general report on the operation of PFI, and we look forward to receiving that in due course.