§ Matthew TaylorTo ask the Chancellor of the Exchequer, pursuant to his answer of 20 November 2001,Official Report, column 270W, on capital assets, what his estimate is of the contribution to public sector net investment made by PPPs in each financial year from 1997–98 to 2003–04. [19187]
§ Mr. Andrew SmithPublic Private Partnerships (PPP) cover a wide range of projects. They have been set up in most central Government Departments and local authorities, and in some public corporations. No information is held centrally on their total value.
In many cases the private sector owns the capital assets used in PPPs. In most of these cases the capital expenditure would not count as public sector net investment because it is private sector expenditure. The exceptions are when a PPP involves a lease of an asset by the public sector, and the accountants classify it as a finance lease. In those circumstances the capital expenditure, and the depreciation of the asset, would be part of the calculation of public sector net investment.
Although private sector investment does not usually count within public sector net investment, it is included as part of the total investment in our public services. This year, it is estimated that private sector investment through PFI will be £4.4 billion out of total investment of £34.2 billion.
766WFigures for estimated private sector investment through PFI can be found in tables c17 and estimated payments by Departments in table C18 of Budget 2001. Private sector investment in off-balance sheet PPPs does not score as public sector net investment.
The vast majority of total investment in public services is funded by the public sector—this year over 85 per cent. of total investment in public services will be funded in this way.