§ Mr. BaldryTo ask the Chancellor of the Exchequer what assessment he has made of the workings of the PFI rules in the case of London and Continental Railways and the Channel Tunnel Rail Link; and what plans he has to review those rules. [30938]
§ Mr. Geoffrey RobinsonThe Channel Tunnel Rail Link project's difficulties are largely due to the unrealistic assumptions made by the London and Continental Railways' management about the Eurostar business in its bid, which should have been recognised by the last Government, but was not. As a result, this project is facing particular financial problems that are not relevant to other PFI deals.
With regard to PFI more generally, this Government commissioned an independent review of the policy as soon as they took office, and are currently in the process of implementing the 29 recommendations that resulted. I have every confidence that the new structures, processes and guidance we are putting in place will lead to increasing numbers of PFI contracts being signed, representing value for money for the taxpayer and welcome business for the private sector.