HC Deb 13 July 2000 vol 353 cc628-9W
Mr. Matthew Taylor

To ask the Secretary of State for the Environment, Transport and the Regions what monitoring his Department undertakes of private finance initiative contracts undertaken by local government; and if he will make a statement. [130277]

Ms Beverley Hughes

I refer the hon. Member to the answer I gave on 4 July 2000,Official Report, column 116W.

Mr. Matthew Taylor

To ask the Secretary of State for the Environment, Transport and the Regions what the net present cost is of each project undertaken in his Department under the private finance initiative; what the value is of their public sector comparators in(a) pre-risk and (b) risk-adjusted terms; what risks have been identified as having been transferred; and if he will place information on other relevant costs for each private finance initiative project in the Library. [130255]

Ms Beverley Hughes

The information requested could be provided only at disproportionate cost.

Mr. Matthew Taylor

To ask the Secretary of State for the Environment, Transport and the Regions what clawback mechanisms exist under private finance initiative contracts within his Department in respect of (a) refinancing and (b) other contingencies; and if he will place copies of each private finance initiative contract in the Library. [130210]

Ms Beverley Hughes

General provisions exist within all the private finance contracts for payments to be made by the contractor in relation to termination on contractor default. The contract for the Croydon Tramlink includes an incentive share agreement whereby Transport for London will share in any refinancing benefits. Transport for London would also receive a share of any excess revenues obtained by the concessionaire. A refinancing of the Channel Tunnel Rail Link (CTRL) would benefit the Government by reducing the requirement for operating subsidy. In addition the CTRL contract allows Government to share in any construction cost underrun as well as a positive cashflow after 2021.

The MOT computerisation contract includes provision for value for money reviews to be conducted at predetermined intervals which will examine profit compared with predicted profit which could result in payments back to the Vehicle Inspectorate. This contract also enables the Vehicle Inspectorate to share in the profits of any value added services deriving from the contract.

In accordance with Treasury Taskforce Policy Statement No 5 (Provision of Information to Parliament), which sets out best practice in relation to departments' obligations to disclose information to Parliament, my Department has not deposited any information in the Library.

Mr. Matthew Taylor

To ask the Secretary of State for the Environment, Transport and the Regions what the average cost to public funds is of external advisers in the negotiation of private finance intiative projects for roads projects expressed as a proportion of each contract's value. [130258]

Mr. Hill

Figures for individual contracts are not available. For the eight privately financed trunk road contracts awarded in England the cost of external advisers expressed as a proportion of the contracts' value is less than one per cent. of the net present value of expected payments over the 30 year life of contracts.

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