HM Treasury News Release
115/97 30 September 1997
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RECOMMENDATIONS TO REINVIGORATE PFI
SEPTEMBER DEADLINES ARE MET
All the 30 September deadlines set to the Treasury for progress
in reinvigorating the Private Finance Initiative (PFI) have been
met.
Welcoming successful progress against the agenda set by Malcolm
Bates in June following his review of the PFI, Paymaster General
Geoffrey Robinson said:
"Malcolm Bates set a tight timetable, but we are determined
to deliver.
"Our Taskforce is now in place. We will implement all 29
of his recommendations over the coming months in documents
that will provide a sound basis for future business and
where there is a Taskforce seal of approval on the cover,
you can be sure it is authoritative advice."
Four recommendations required central action by today. Progress
means that :
* procedures for delivering Government support for local
authority PFI projects will be streamlined and strengthened
under a new framework, full details of which will be
published soon. Under these :
- the PFI Taskforce will work closely with Government
Departments to sign off good quality projects and
offer expertise on those that are significant.
- the Public Private Partnerships Programme (4Ps) will
continue to play a critical role on behalf of Local
Government, advocating their interests and working up
proposals so as to enhance their viability and thus
increase the chances of securing endorsement.
* new Treasury guidance on the balance sheet treatment of PFI
transactions for Central Government Departments and
Agencies will apply immediately. It has already been
positively received by the National Audit Office and Audit
Commission.
* the Treasury has given written assurance that funding for
contracts by central Government Departments will not be cut
after signature of value for money contracts, provided
contractual commitments continue to be met.
* the new Taskforce has circulated some draft guidance on
Public Sector Comparators and when they should be used, on
which it will now seek comment from experts.
In addition, good progress is being made by other departments in
addressing the recommendations which fall to them. The Local
Government (Contracts) Bill has cleared all its Commons Stages.
Guidance to distributors of lottery funds is expected to be
issued by DCMS soon. Departments have identified their PFI
training needs and the Taskforce is now considering that
information and possible delivery mechanisms.
NOTES TO EDITORS
1. On 23 June Malcolm Bates made 29 recommendations to
reinvigorate the PFI (HMT press release 69/97). Many of
these have deadlines falling between September and December
this year.
2. The Treasury Taskforce, whose full team was announced only
last week, will publish guidance in response to these
recommendations and other PFI issues in a definitive
collection of central documents. This will be available in
four series:
Series 1: Generic guidance - to include an
Introductory Guide to PFI.
Series 2: Policy Statements - "What to do" documents.
Series 3: Technical notes - "How to do" documents.
Series 4: Case studies.
The Introductory Guide will be available shortly. Other
documents will be produced in line with Malcolm Bates' timetable,
wherever possible taking account of views expressed by public and
private sector PFI.
3. For further information and copies of the available
guidance call Nick Crowther on 0171 270 5527.
4. Media enquiries should be addressed to Charles Keseru on
0171 270 5188.
5. If you have access to the Internet you can find this news
release and other Treasury material at http://www.hm-treasury.gov.uk.