Commenting on the publication of the National Audit Office’s report into the lessons for Government from the Private Finance Initiative (PFI) and other projects, South Norfolk MP Richard Bacon, a member of the Commons public accounts committee, said:
“Whatever the benefits or demerits of the Private Finance Initiative, it has certainly required Whitehall to acquire new skills in procurement. However, that skills base is neither wide nor deep. There are still not enough civil servants with the skills and experience to manage major procurement projects successfully. This is especially true of PFI, which puts the public sector at a disadvantage, often forcing reliance on expensive advisers whose advice can then be difficult to challenge.
“Moreover, too many projects keep ploughing on despite receiving a ‘red’ rating from an Office of Government Commerce Gateway Review. All projects should be open to external challenge from officials with the experience to know when taxpayers’ money is at risk.
“The report also finds that the rules still exclude PFI costs from the statistical calculations of Public Sector Net Debt, even though PFI can no longer be used to keep procurement costs off departmental balance sheets and out of calculations of national debt. This makes PFI seem more attractive than it really is. The overriding concern when considering the use of PFI should be obtaining an honest and accurate assessment of the extent to which a project offers genuine value for money.
“This report should be required reading for senior civil servants whenever a government department even hints that it may wish to use the Private Finance Initiative”.
28 April 2011
NAO REPORT: Lessons from PFI and other projects
PARLIAMENT: Treasury must be vigilant over PFI financing, says MPPARLIAMENT: Public bodies ‘chained’ to PFI, says MPPARLIAMENT: Schools and hospitals ‘fleeced’ by £6m PFI loophole - MP
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