§ Lord McIntosh of HaringeyMy right honourable friend the Chief Secretary to the Treasury (Paul Boateng) has made the following Written Ministerial Statement.
Enclosed below are the latest figures reported by departments on their private finance initiative (PFI) activities. The submission of this information is in accordance with departments' obligation to disclose PFI information to Parliament on a biannual basis.
Table 1 shows the estimated private sector investment in public services resulting from signed PFI contracts over the period 2004–05 to 2006–07. Table 2 shows the estimated total capital value of PFI contracts that are currently at the preferred bidder stage of procurement. Tables 1 and 2 are both presented on a departmental basis.
Table 3 shows a forecast of the estimated payments for services flowing from signed PFI projects. It should be noted that procuring authorities pay only when they receive the high quality services specified in PFI contracts. If such services are not received then deductions can be made from anticipated payments. This table is presented in aggregate form and covers the period 2004–05 to 2029–30.
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Table 1: Departmental estimate of capital spending by the private sector (signed deals)1,2 Department Projections (£ millions) 2004–05 2005–06 2006–07 Education and Skills3,4 87 4 1 Health 556 689 476 Transport5,6 1,450 1,497 1,411 Office of the Deputy Prime Minister 54 55 101 Home Office 104 6 0 Constitutional Affairs 33 29 8 Defence 865 458 304 Foreign and Commonwealth Office 6 5 5 Trade and Industry 5 5 2
Department Projections (£ millions) 2004–05 2005–06 2006–07 Environment, Food and Rural Affairs 69 46 24 Work and Pensions 41 44 34 Scotland 172 78 7 Wales 58 18 0 Northern Ireland Executive 2 4 16 Chancellor's Department 46 38 34 Cabinet Office 6 1 0 Culture, Media and Sport 5 13 9 Total 3,559 2,990 2,432 1 Investment in assets scored on the public sector balance sheet also scores as public sector net investment. Figures are for investment under PFI-type contracts only. 2 PFI activity in local authority projects is included under the sponsoring central government department. 3 Excludes private finance activity in educational institutions classified to the private sector. 4 Figures reported for non-IT projects relate to the amount of PFI credits awarded. Includes estimates of the capital expenditure for the London Underground Limited (LUL) public/private partnership PFI contracts in the years that investments are expected to take place. 5 Excludes estimates of capital expenditure on the Channel Tunnel Rail Link (CTRL). 40WS
Table 2: Estimated aggregated capital value of projects at preferred bidder stage Department Projections (£ millions) 2004–05 2005–06 2006–07 Education and Skills7 870 0 0 Health 1,613 1,200 0 Transport 28 0 0 Office of the Deputy Prime Minister 35 60 55 Home Office 91 26 0 Constitutional Affairs 0 0 0 Defence 378 106 198 Foreign and Commonwealth Office 0 0 0 Trade and Industry 0 0 0 Environment, Food and Rural Affairs 0 0 0 Work and Pensions 0 0 0 Scotland 183 203 224 Wales 5 57 0 Northern Ireland Executive 50 32 20 Chancellor's Department 0 0 0 Cabinet Office 0 0 0 Culture, Media and Sport 46 33 11 Total 3,299 1,717 508 7 Figures reported relate to the amount of PFI credits awarded.
Table 3: Estimated payments under PFI contracts: December 2004 (signed deals)8 Year Projections (£ billions) Year Projections (£ billions) 2004–05 5.7 2017–18 5.9 2005–06 6.2 2018–19 3.9 2006–07 6.6 2019–20 3.9 2007–08 6.6 2020–21 4.0 2008–09 6.4 2021–22 3.7 2009–10 6.5 2022–23 3.8 2010–11 6.4 2023–24 3.8 2011–12 6.3 2024–25 3.7 2012–13 6.3 2025–26 3.7 2013–14 6.3 2026–27 3.4 2014–15 6.2 2027–28 3.2 2015–16 6.3 2028–29 2.9 2016–17 6.3 2029–30 2.6 8 The figures between 2004–05 and 2017–18 include estimated payments for the LUL PPP contracts. These contracts contain periodic reviews every 7.5 years and therefore the service payments are not fixed after 2009–10.