HC Deb 16 July 1996 vol 281 cc451-2W
Mr. Gordon Prentice

To ask the Chancellor of the Exchequer what recent assessment he has made of the success of the private finance initiative. [36836]

Mr. Jack

I announced on 3 April that £4.8 billion of private finance deals had been agreed in the financial year 1995–96, with £300 million of deals at preferred bidder stage and £330 million due to be agreed. The current total of agreed private finance deals has now risen to £5.5 billion, including projects such as the development of the Department of Social Security's Newcastle estate at Longbenton, two prison projects at Bridgend and Fazakerley and benefits payments automation through the Post Office. These figures indicate that the Government are well on the way to reaching their target of agreeing £14 billion of deals by the end of 1998–99.

Mr. Geoffrey Robinson

To ask the Chancellor of the Exchequer how much private capital was invested through the PFI in public projects in each financial year up to 1995–96; and what are his current forecasts for(a) 1996–97, (b) 1997–98 and (c) 1998–99. [36590]

Mr. Jack

Estimated levels of private sector capital spending in public projects via the private finance initiative were, in 1993–94, 1994–95 and 1995–96, £0.3 billion, £0.3 billion and £0.6 billion respectively. The projections for 1996–97, 1997–98 and 1998–99 are £1.9 billion, £2.6 billion and £2.8 billion respectively. Further details about the private finance initiative and capital spending can be found in tables 6.4 and 6.5 of the "Financial Statement and Budget Report" 1996–97, published on 28 November 1995.