SOUTH NORFOLK MP Richard Bacon has said he is hopeful the public sector will get a better deal from PFI refinancings in future, as a new report finds that the taxpayer has missed out on millions from previous refinancings of early PFI projects.

Mr Bacon was speaking as the National Audit Office published its report into PFI debt refinancing. 

Richard Bacon, a member of the Commons public accounts committee said today:

“The private sector took massive profits from the refinancing of early PFI deals like the Norfolk and Norwich Hospital, whilst the public sector took on increased risks, including huge extra financial liabilities”.

“Now that the committee and the National Audit Office have highlighted this issue, I am hopeful that the public sector will get a better deal in any future refinancings”.

“However, the secondary market – where shares in existing PFI schemes are bought and sold – needs to be carefully monitored to ensure that new investors are not cutting corners on the services provided in order to increase their returns”.  

21 April 2006

See also:
NAO REPORT: Update on PFI debt refinancing