§ Dr. CableTo ask the Chancellor of the Exchequer what estimate he has made of the public sector financial obligation in each of the next ten years arising from PFI projects signed since 1 May 1997; and in each case what is the margin of error. [58662]
§ Dr. CableTo ask the Chancellor of the Exchequer if he will list the(a) number and (b) total value of Private Finance Initiative projects signed since 1 May 1997; and estimate their impact on the profile of public sector borrowing in each of the next 10 years indicating the margin of error in his estimates. [58495]
§ Mr. Geoffrey RobinsonSince 1 May 1997, 61 PFI projects have been signed which will result in total capital investment of £3.8 billion—equal to the investment from projects signed in the previous 5 years (excluding CTRL).
Almost all signed PFI projects are accounted for wholly as service contracts. The capital investment by the private sector supplier has no impact on public sector net borrowing. Future service payments by the public sector score in total current expenditure, which is a factor in the calculation of net borrowing.
One exception is the Ministry of Defence project for accommodation for military personnel at Lossiemouth, part of which will be accounted for as capital expenditure. Current estimates indicate that this will result in £24 million being scored in public sector net borrowing in 1999–2000.