§ Mr. Matthew BanksTo ask the Chancellor of the Exchequer if he will make a statement about the extended life of the private finance panel and the provision of grant in aid. [7953]
§ Mr. JackMy right hon. and learned Friend the Chancellor of the Exchequer has agreed that the life of the private finance panel be extended to 30 September 1997. Grant in aid to meet the running costs of the private finance panel executive, which provides administrative and other assistance to the panel, will be sought in estimates for Her Majesty's Treasury's vote, class XVI, vote 1.
§ Mr. MorganTo ask the Chancellor of the Exchequer if he will place in the Library a copy of the letter of comfort to be provided to financial institutions and other participants in consortia participating in the private finance initiative to cover business expectations beyond the public sector contracting cycle. [2821]
§ Mr. Jack[holding answer 27 November 1995]: I know of no such general letter of comfort and have no plans to issue one. Particular contracts may provide for possible extension of the contract beyond the period initially planned, although in general there will be competitive benefits if the original supplier is not guaranteed to recover the original investment. I would like to draw the hon. Member's attention to the case studies, which discuss optimum contract length, in chapter 4 of the private finance guidance handbook "Private Opportunity, Public benefit", a copy of which has been placed in the Library.