HC Deb 28 June 1995 vol 262 cc738-40W
Mr. Betts

To ask the Secretary of State for Social Security 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. [30833]

Mr. Hague

The administrative cost of taking forward the private finance initiative in this Department in 199495 is estimated at around £2 million. The estimated cost for 1995–96 is around £8 million. One contract has so far been awarded by the Department under the PFI at a cost estimated to be more than 30 per cent. cheaper than the public sector alternative. The award of this contract will result in 151 staff being transferred from public to private sector under the transfer of undertaking of pensions entitlement—TUPE—arrangements from 1 November this year.

Mr. Betts

To ask the Secretary of State for Social Security 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. [30832]

Mr. Hague

My right hon. Friend the Secretary of State announced the first award by this Department of a private finance initiative contract for the development and replacement of the national insurance recording system on 27 April this year. The total value of the project was estimated to be £150 million. Two further major schemes are being considered with an estimated combined value of £160 million. Both of these schemes have been in the process of assessment for more than six months but less than 12. PFI is an option that is considered for the whole of the Department's capital programme. A number of small schemes are in the initial stages of consideration and it is too early to provide a reliable estimate of their value. The time taken to assess the one scheme so far approved was 10 months.