HM Treasury News Release

170/98                                           21 October 1998     

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GEOFFREY ROBINSON CALLS ON PFI BIDDERS TO WORK WITH TRADE UNIONS 

New Treasury Taskforce guidelines highlighting staff consultation
will lead to greater openness in PFI projects, Paymaster General
Geoffrey Robinson announced today.  

The procedures outlined today - which have the full support of
the CBI and TUC - are designed to encourage transparency and
openness during the consultation with staff and other interested
parties.  Calling for greater trust and cooperation between
Departments, bidders and trade unions, Geoffrey Robinson said:

"The quality of the service which PFI projects deliver depends
on the skills and commitment of its staff.   Openness between
bidders,  trade unions and staff is an essential part of  any
well run procurement process.

"By working closely with staff representatives and acting
positively, and by taking on the responsibility for retraining
affected staff, the private sector can deliver a good deal for
the public as well as creating valuable alternative employment
opportunities. Trade unions know this too. Applied sensibly,
these guidelines will ensure that their concerns are listened to.
I want to see trade unions use it in that way.

"I also look to other Departments and public bodies to remove the
cloak of secrecy surrounding PFI and allow the free flow of
information on PFI projects. Hiding behind the empty phrase
"commercial confidentiality" will no longer be the easy option."


NOTES TO EDITORS

1. The Treasury Taskforce Private Finance Policy Statement No.
4 "Disclosure of Information and Consultation with Staff and
other Interested Parties" is published today.

2. The guidance explains how the contract award process needs to
include an assessment of each bidder's ability to attract and
retain a well-motivated staff of the right calibre for there to
be confidence about the bidders' ability to deliver the required
service.  It explains how trade unions and other bodies can
contribute to the contract award process.

3. Provided it is relevant, bidders will be asked to submit a
statement of their track record in employment and this could
include wages and conditions, labour relations, health and safety
and training.  Subject to EC legal constraints, unions will be
invited to provide the public sector client with relevant
information on the fitness of potential candidates and meet with
short-listed bidders.

4. Media enquiries and requests for copies of the document should
be addressed to Malcolm Graves in the Press Office on 0171 270
5192.  Further information on the publications issued today,
contact Tim Wilson, Head of the Taskforce policy arm on 0171 270
4702. The news release is available on the internet at
http://www.hm-treasury.gov.uk



# = pounds sterling