HC Deb 03 July 1995 vol 263 cc23-4W
Mr. Betts

To ask the Secretary of State for National Heritage (1) by how much Government spending has changed in 1994–95 as a result of the private finance initiative; what is the estimated effect in 1995–96; how many jobs are to be created by schemes approved to date under the initiative and how many have been lost as a consequence in the public sector; and what is the forecast of transfer of employment from public to private sector over the last five years because of the initiative; [30839]

(2) how many schemes and to what value have been approved in 1994–95 under the private finance initiative; what are the estimates for the current financial year; how many schemes are currently being considered and at what value; for how long have they been considered and how many have been in the assessment process for over (a) six months and (b) 12 months; and what was the average length of time taken to assess schemes so far approved. [30838]

Mr. Sproat

[holding answer 28 June J 995]: My Department operates mainly through its many sponsored bodies and agencies and undertakes little expenditure on its own account. Its effort is therefore largely devoted to encouraging those whom it sponsors to exploit to the full in their own capital programmes the opportunities of the private finance initiative. The cost of this effort within the Department is about £65,000 a year.

One PFI project has so far required to be approved by my Department—the move of the Royal Armouries from the Tower of London to Leeds. The proposal was submitted in May 1992 and approval was given in December 1993. The total cost of the project is £42.5 million. The public sector contribution comprises: £20 million, financed by the Historic Royal Agency from increased receipts at the Tower of London; £5 million from Leeds development corporation; and £3.5 million from Leeds city council. The effect on public sector manpower is neutral, but the project will increase opportunities for private sector employment.

No projects required departmental approval in 1994–95. A number of projects are at various stages of consideration by my Department's sponsored bodies in the current— 1995–96—financial year. Of these, it is not possible to estimate the number that will require departmental approval.