HC Deb 30 November 1993 vol 233 cc501-2W
Mr. Straw

To ask the Secretary of State for the Environment if he will make a statement on the effect on the private finance initiative of the present rules governing the treatment by local authorities on(a) capital expenditure, (b) capital receipts, (c) leasing, (d) transactions involving local authority companies, (e) guarantees, (f) equity investment by local authorities and (g) competition for public sector contracts; and what proposals he has to amend these rules in order to increase local authorities' ability to participate in the private finance initiative.

Mr. Gummer

The rules to which the hon. Member refers provide a framework within which local authorities can collaborate with the private sector. Within them, authorities have developed excellent plans under, for example, city challenge and urban regeneration programmes. I am always willing to consider suggestions which would help authorities to collaborate with the private sector without undermining the necessary constraints on public expenditure.

Mr. Straw

To ask the Secretary of State for the Environment how many projects involving local authorities and the private sector have been materially assisted by the private finance initiative since November 1992; and if he will list those projects showing for each(a) the estimated value of the project, (b) the expenditure to date, (c) the nature of the material assistance from the private finance initiative and (d) all the sources of funding for the project and the amount from each source.

Mr. Gummer

The Department and its sponsored bodies attracted over £2 billion of private investment in support of departmental programmes in 1992–93, and similarly expects to lever in up to £3 billion of private funding in 1993–94. This will assist the implementation of a wide variety of projects, most notably in housing, inner cities and urban regeneration, with many directly or indirectly involving local authorities. Separately, many authorities are pursuing local initiatives and partnerships with the private sector. It is not practicable for the Department to collect information on each project.