§ 21. Mr. Ian BruceTo ask the Secretary of State for Transport what is the limit of Government support for roads funded by private finance initiatives sponsored by local councils; and what account he will take of this limit in determining whether to support a bid to build the Dorchester relief road under the private finance initiative. [13365]
§ Mr. WattsThe regulations for local authority PFI enable authorities to build any self-financing schemes which meet specified risk transfer tests. For schemes where local authorities will be purchasers of design, build, finance and operate services, assistance with future payments can be given through a notional credit approval. The Treasury has agreed to initial resources of £200 million for notional credit approvals to English local authority PFI schemes in 1997–98.
This includes £35 million for transport projects in 1997–98. I stress that this is an initial and provisional figure. Provisional quotas may be redistributed if local authorities have more success in some project areas than others in generating acceptable PFI projects.
A number of highway authorities, including Dorset county council, have expressed their interest in developing DBFO schemes. If satisfactory business cases are proposed, the Department of Transport will seek Treasury agreement to the notional credit approvals which may be required.