HC Deb 13 July 2000 vol 353 cc659-60W
Mr. Matthew Taylor

To ask the Secretary of State for Education and Employment what the average length of time is between(a) the completion of the outline business case and the signing of the final contract and (b) the publication in the Official Journal of the European Community and the signing of the final contract, where applicable, of private finance initiative contracts for schools. [130253]

Jacqui Smith

To date, 16 schools private finance initiative contracts have reached final contract signature in England, taking on average 22 months from placing initial notices in theOfficial Journal of the European Community. Because many of these projects were advertised before the current arrangements for reviewing outline business cases were introduced in late 1997, it is not possible to provide a meaningful average length of time between outline business cases being approved and final contract signature. However, since the current arrangements were introduced, a typical schools project takes around three months for the outline business case to be assessed and approved.

Mr. Matthew Taylor

To ask the Secretary of State for Education and Employment what monitoring is undertaken of private finance initiative contracts for schools, further education colleges and higher education; and if he will make a statement. [130278]

Mr. Wicks

Responsibility for monitoring PFI projects lies with the relevant procuring body. For schools, monitoring is the responsibility of Local Education Authorities or other procuring bodies. The Department informs the Department for the Environment, Transport, and the Regions about services and payments arising from new projects, so that the overall level of revenue commitments can be monitored.

The Further Education Funding Council supports colleges in developing projects and monitors educational achievement, financial returns and the efficient use of property.

The Higher Education Funding Council for England monitors progress by requiring higher education institutions to submit progress reports on PFI contracts as part of their annual financial forecasts.

The Department works closely with LEAs and the Funding Councils to ensure that procedures are in place to monitor progress and value for money effectively.

Mr. Matthew Taylor

To ask the Secretary of State for Education and Employment what clawback mechanisms exist under private finance initiatives within his Department in respect of contingencies other then refinancing; and if he will place copies of each private finance initiative contract in the Library. [130263]

Mr. Wicks

The Employment Service has entered into three Private Finance Initiative contracts since 1997. It has established private finance deals for the delivery of procedural guidance via networked personal computers, for the delivery of all IT and related services, and for pay and personnel records.

None of these contracts has clawback mechanisms other than the normal agreements to reduce the charges made under each contract in the case of failure to meet agreed service levels.

I will be unable to place copies of these contracts in the Library, as they contain information that is considered commercially confidential.

Mr. Matthew Taylor

To ask the Secretary of State for Education and Employment what use of equity finance has been made in his Department's private finance initiative projects; and if he will make a statement. [130256]

Mr. Wicks

The Employment Service has entered into three Private Finance Initiative contracts. None of these projects makes use of equity finance.