Private Finance Initiative (Hansard, 14 December 1995)

§ Mr. Betts
To ask the Chancellor of the Exchequer if he will list all Departments for which forecasts of capital spending under the private finance initiative are available for(a) 1999–2000 and (b) 2000–2001. [5756]

§ Mr. Jack
Table 6.5 of the "Financial Statement and Budget Report" gives the estimated figures for the survey period.

§ Mr. Betts
To ask the Chancellor of the Exchequer if he will make a statement on the policy with regard to the disclosure of information on schemes under the private finance initiative and the extent to which issues of commercial confidentiality affect such disclosure. [5758]

§ Mr. Jack
The duty of Departments to account to Parliament for their spending is not changed by the private finance initiative. Disclosure while negotiations are still proceeding would usually weaken the Government's negotiating position. Nevertheless, the National Audit Office has access to documents relating to private finance initiative contracts, as it does for other contracts. In line with reporting arrangements for other contracts, information on private finance initiative schemes can be disclosed after a contract has been settled, except where there is a specific undertaking of commercial confidentiality on a particular matter.

§ Mr. Betts
To ask the Chancellor of the Exchequer if his Department receives from other Departments information on all private finance initiative schemes. [5757]

§ Mr. Jack
The PFI is a decentralised initiative. Individual Secretaries of State have the responsibility for driving forward the initiative in their areas. As such, not734W every project will require direct Treasury approval and as a consequence we will not receive information centrally on every PFI project.

§ Mr. Betts
To ask the Chancellor of the Exchequer if he will provide for schemes so far agreed under the PFI the level of financing costs above the current cost of Government borrowing for the scheme with(a) the highest financing costs and (b) the lowest costs. [5727]

§ Mr. Jack
The information is not available in the form requested because it is a fundamental principle when considering schemes under the private finance initiative that what is assessed is the overall best value for money in providing a specified service, taking into account all aspects of design, building, finance and operation as a unified whole.

§ Mr. Wigley
To ask the Chancellor of the Exchequer what estimate he has made of the total annual cost to public funds of schemes to be funded by the private finance initiative at current prices for each of the next 10 years; and if he will make a statement. [5464]

§ Mr. Betts
To ask the Chancellor of the Exchequer if he will provide revenue forecasts for the current year and the next five years of expenditure on schemes provided under the PFI. [5726]

§ Mr. Jack
It is for individual Departments to estimate the revenue costs of the PFI projects in their sphere of the responsibility, and to take these costs into account in their expenditure plans. However, on the basis of assessments of four major Departments, total service payments in the current year and the next three years are expected to be, very broadly:

1995–96: []

1996–97: 130

1997–98: 295

1998–99: 460

However, these are only indicative numbers. The precise size and timing of revenue payments depend on agreement to projects, many of which are currently under negotiation, and on the subsequent delivery and levels of use of specific services to specified standards. Central information is not available for the full 10 years requested.