§ Mr. SpellarTo ask the Chancellor of the Exchequer what measures he is proposing to reduce tendering costs for public finance initiative schemes. [37162]
§ Mr. JackThis is, of course a private not a public finance initiative—although the Government want to keep costs down for both the private and public sectors. I am keen to see an increase in the use of the private finance initiative for the scouring of public projects. However, I am aware of concerns about the costs involved in this exercise and plan shortly to meet with representatives of the construction industry to discuss the matter. However, as experience of the PFI grows costs will continue to fall as Government and business improve their expertise in making contracts in this way. The Government are also encouraging the spread of best practice among Departments, for example by avoiding over-prescriptive specifications.