§ Mr. Matthew Banks
To ask the Chancellor of the Exchequer what progress has been made towards agreeing private finance initiative projects in 1995–96; what steps he is taking to increase the number of private finance initiative contracts; and if he will make a statement. 
§ Mr. Jack
The private finance initiative is now making a serious contribution to the delivery of services to the public. Within 12 months, the Government have agreed projects with a capital value of £4.8 billion. In addition, projects with a capital value of around £300 million are at preferred bidder stage. A further £330 million worth is expected to be agreed shortly. These are listed in the tables.
These figures tell only part of the story. The total value of a PFI deal to the private sector can typically be three times the capital value because the Government contract to buy services associated with an asset for years to come.
Through PFI, the Government have achieved more than many people ever thought possible, though agreeing this number of deals has not been without problems. I have published new procurement guidelines today which will be circulated throughout the public sector. They are a practical response to comments made by people active in PFI and are designed to help smooth out processes, reduce bidding costs and speed up the flow of good deals. I have placed a copy in the Library.
PFI offers prospects for the public and private sectors to work in partnership throughout the country. I am about to embark on a tour to promote PFI regionally and to hear directly from people active on PFI contracts.260W
From this solid base, the Government intend to go on to agree at least £14 billion worth of deals by the end of 1998–99. The PFI is unlocking new resources, producing a new range of investment opportunities and increasingly replacing more old-style public sector capital spending and service procurement.
Agreed private finance initiative projects £ million Home Office Bridgend prison 50 Fazakerley prison 50 Immigration Nationality Department 20 Other Home Office projects 20 Transport Channel tunnel rail link 3,000 Northern Line trains 400 Ist tranche design, build, finance and operate 380 Social Security National insurance recording computer system 150 Health South Bucks district general hospital 40 St. James', Leeds 50 Royal Berks and Battle 20 Norwich and Norfolk district general hospital 170 Swindon and Marlborough 90 Smaller deals 70 Defence RAF vehicle fleet in Germany 50 Other defence projects 55 Scotland Dundee district council: waste to energy 40 Hairmyres and Stonehouse NHS trust 60 Other Scottish health projects 20 Wales University Hospital Wales 10 Environment Waltham Forest housing action trust 15 Total value of agreed announced projects 4,760 Other hospital projects with identified preferred bidder but which have yet to be announced 300
Examples of imminent projects Projects £million Docklands Light Railway extension 120 Longbenton DSS: Newcastle site redevelopment 80 Benefit payments automation through Post Office 120 British museum support building 10 Total 330