§ Mr. WoodTo ask the Secretary of State for Education and Skills what provision has been made to protect schools against the risk of financial failure on the part of a private finance initiative contractor. [185399]
§ Mr. MilibandMost PFI deals involve stand-alone special purpose vehicles (SPVs) with other investors and contractors, plus bank financing. It is a usual feature of PFI projects that the banks have the opportunity to step in and find a new contractor in the event of insolvency and we would expect the banks to do this. The Department for Education and Skills is not party to schools PFI contracts; these are between the local authority and the relevant consortium. Officials are ready to assist and advise local authorities if this should prove necessary.