§ Mr. FlightTo ask the Chancellor of the Exchequer (1) whether his Department is reviewing the use of the Private Finance Initiative and public-private partnerships; and if he will make a statement; [81812]
(2) what plans he has to review the bidding process for public-private partnerships. [81785]
§ Ruth KellyThe Government keep all aspects of procurement policy under review in order to ensure that high quality public services are delivered on the basis of value for money.
§ Mr. FlightTo ask the Chancellor of the Exchequer how much of the off-balance-sheet borrowings funding projects on the Private Finance Initiative and public private-partnerships are(a) fully guaranteed and (b) effectively guaranteed. [81813]
§ Ruth KellyA full guarantee is in place in relation to the bonds issued by London and Continental Railways for the development of the Channel Tunnel Rail Link. This represents a contingent liability of £3.75 billion and has been laid before the House.
No borrowings related to PFI and PPP are effectively guaranteed.
§ Mr. FlightTo ask the Chancellor of the Exchequer how many letters of comfort his Department has issued in association with the public private-partnership financing scheme. [81814]
§ Ruth KellyDetails of all letters of comfort which fall within the definition of a reportable non-statutory liability in Chapter 26 of "Government Accounting" have been provided in minutes laid before the House of Commons. The exceptions are those cases where commercial confidentiality has required that they be reported in confidence in writing to the Chair of Public Accounts Committee.
§ Mr. FlightTo ask the Chancellor of the Exchequer what checks and balances are in place to ensure that investment through public-private partnership and Public Finance Initiative offers value for money for the Government. [81815]
§ Ruth KellyThis Government only uses PFI where there is a clear value for money case to do so. Specific procurement decisions are a matter for individual Departments concerned.
§ Mr. FlightTo ask the Chancellor of the Exchequer (1) if he will make a statement on the Government's system for accounting for public-private partnerships and the Private Finance Initiative; [81811]
(2) if he will make a statement on the Government's liabilities, including those under PFI. [81807]
278W
§ Ruth KellyAll Government liabilities are disclosed on the basis of openness and transparency. Independent auditors determine the accounting treatment for PFI and public-private partnership projects. The Government record all future PFI obligations in the Budget Red Book and reports to Parliament any contingent liabilities over £100,000.