HM Treasury News Release
66/97                                              13 June 1997             
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           PAYMASTER STARTS COUNTDOWN TO NEW PFI 
             Bates Review Delivered to Treasury
                   Announcement on 23 June

     Paymaster General Geoffrey Robinson promised today swift
decisions on action to re-invigorate the Private Finance
Initiative.  

     Receiving from Malcolm Bates the PFI Review commissioned on
8 May, Mr Robinson said he would now consider the report before
announcing at a 23 June press conference the action he will take. 
Mr Robinson said:

     "I promised swift, decisive action to re-invigorate the
Private Finance Initiative and that is exactly what I will
deliver.  This report from Malcolm Bates will not sit on the
shelf.  I will publish the conclusions and announce my decisions
in less than two weeks.

     "We do not let the grass grow under our feet here.  Even
while Malcolm Bates was writing his review, I was taking urgent
steps to help PFI start delivering its potential:

   -  abolishing universal testing (where every project had to
      be tested for private finance potential) to stop the system
      gumming up with hopeless projects;

     
   -  getting government departments to produce a list of their
      priority projects on which they were going to focus their
      efforts;

   -  agreeing with the Department of Health to the publication
      of a Bill to smooth the way for major PFI hospital projects;   

   -  negotiating with the Department of the Environment to
      introduce yesterday legislation that will bring about a stream
      of projects in the local authority sector. 
     

     "This was just the beginning.  My thanks go to Malcolm for
all his hard work.  Now I have his report, I can decide on action
that will see school, hospital, transport and a host of other
high quality projects become reality for communities up and down
the country. I will announce the way forward on 23 June."


Note to Editors


1.  On 8 May the Paymaster asked Malcolm Bates (Chairman of the
Pearl Group and Chairman of Premier Farnell) to conduct a speedy
review of PFI.


Operational Note


1. The Paymaster will publish at a press conference on 23 June
the conclusions of the Bates Review.  He will also announce the
action to be taken to re-invigorate PFI.

2.  The press conference will be held at 11am, HM Treasury,
Parliament Street, London, SW1P 3AG.

3. It will be open to journalists only.  Those wishing to attend
should call Louise Burge on 0171 270 5644.