HM Treasury News Release

141/98                                         27 August 1998
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        TREASURY TASKFORCE CONTINUES TO REINVIGORATE PFI

The Treasury's Private Finance Taskforce continues to set the
pace in reinvigorating the PFI and has today:

*    published new best practice guidance for civil servants on
     how to appoint and manage PFI advisers in the most cost
     effective manner (Technical Note No 3); and

*    given written assurance that funding for PFI contracts by
     non-Departmental public bodies (NDPBs)  will not be cut
     after signature of value for money contracts (Policy
     Statement No 3).

In addition, a user-friendly  CD-ROM entitled "The Digital Guide
to PFI" has been produced,  bringing together over 30 documents
comprising all Taskforce-approved PFI case studies, technical
notes and policy statements (including the two publications
released today) as well as general Treasury Procurement Group
guidelines on the PFI process. The CD was produced in partnership
with Digital Networks Ltd, the fourth Public Private Partnership
that the Taskforce has entered into.

Paymaster General Geoffrey Robinson said:

     "With a growing number of PFI projects signed or close
     to signature, it is vital that the Treasury Taskforce
     disseminates best practice as widely as possible. The
     new advisers guidance, for example, takes into account
     the lessons of the past and should help the public
     sector achieve better value for money.  I am 
     delighted that, in addition to the traditional paper
     documents already available, our top quality guidance
     material can now be accessed at the touch of a button. 

     "It is also terrific to see the Treasury Taskforce
     once again practising what it preaches. PPP's are all
     about negotiating deals that are good for both sides,
     and the Government is keen to exploit the potential
     for value for money through the use of a wide spectrum
     of partnerships that combine public and private sector
     skills".

The CD ROM  is available from Digital Networks Limited,  PO Box
24402, London W5 4WQ  (Tel  0181 567 0178, fax : 0181 567 0216).
It  can also be ordered over the Internet through
www.dignet.co.uk/order. The single CD contains 4MB of information 
- equivalent to over 700 pages, or 5kgs of A4 paper.


NOTES TO EDITORS

1    The Treasury Taskforce has developed three previous PPPs. 
     First, an Internet website, delivered in partnership with
     InteResource, with sponsorship from DTZ and Berwin Leighton,
     secondly, a contract to deliver a programme of Taskforce PFI
     Conferences with Capita Group Plc and, thirdly, a contract
     for the provision of a programme of PFI training for civil
     servants with Price Waterhouse. All four PPPs will be
     delivered at no cost to the HM Treasury.

2    As part of last year's Bates review, Recommendation 11 asked
     the Taskforce to develop a means of improving the quality
     of PFI advisers, including the development of an
     accreditation facility. However, consultation has revealed
     that the specific idea of "accreditation" faces legal
     difficulties and, in any case, would prove unwieldy and
     impose an unnecessary bureaucratic burden on the public
     sector. The publication of new guidance material is expected
     to meet the spirit if not the letter of the Bates
     recommendation.

3    Recommendation 16 asked the Taskforce to give written
     assurance that funding for PFI contracts by central
     Government Departments will not be cut after signature,
     provided contractual commitments continue to be met. This
     assurance was provided in Policy Statement No 1 published
     last September. Recommendation 17 asked the Taskforce to
     provide similar comfort for NDPB projects. Policy Statement
     No 3 does just that.

4    Media enquiries and requests for copies of the document
     should be should be addressed to the Press Office on 0171
     270 5192.  For further details on "The Digital Guide to PFI"
     contact Ben Prynn of the Treasury Taskforce on 0171 270
     5022. The CD-Rom costs #6.50 (+VAT) to the public sector,
     and #90 (+VAT) to the private sector. For further
     information on the two publications issued today, contact
     Tony Whitehead in the Taskforce on 0171 270 4637.



# = pounds sterling