By Vivienne Russell
27 November 2009
The principles of the Private Finance Initiative will remain even if the name is ditched, business leaders have said.
Shadow chancellor George Osborne has criticised the current PFI model for its lack of transparency and last week said a Conservative government would bring in an alternative.
But the CBI told Public Finance that the principles that underpin the PFI – the involvement of private finance, a partnership model and a ‘whole life’ approach to contracts – were almost certain to remain.
Elizabeth Fells, head of public services reform at the CBI, said: ‘We believe there will always be a role for the PFI. Perhaps [it]will be rebranded. It has evolved since its inception, has become a lot more flexible and responsive and we expect that to continue.’
She said that the CBI expected the development of new models such as Lift – the programme that refurbishes GP premises – and the approach taken by local education partnerships in the Building Schools for the Future programme.
Fells acknowledged that the PFI had not always been a success. ‘There’s no point denying that things have gone wrong, but the model has changed over time to make sure it does deliver value for money and that it’s fair on both the public and private sector,’ she said.
The CBI held its annual conference this week and was addressed by all three main party leaders. Prime Minister Gordon Brown said the government would support the economy until private sector recovery was established and ‘we will ensure that nothing we do will jeopardise that recovery’.
27 November 2009
The principles of the Private Finance Initiative will remain even if the name is ditched, business leaders have said.
Shadow chancellor George Osborne has criticised the current PFI model for its lack of transparency and last week said a Conservative government would bring in an alternative.
But the CBI told Public Finance that the principles that underpin the PFI – the involvement of private finance, a partnership model and a ‘whole life’ approach to contracts – were almost certain to remain.
Elizabeth Fells, head of public services reform at the CBI, said: ‘We believe there will always be a role for the PFI. Perhaps [it]will be rebranded. It has evolved since its inception, has become a lot more flexible and responsive and we expect that to continue.’
She said that the CBI expected the development of new models such as Lift – the programme that refurbishes GP premises – and the approach taken by local education partnerships in the Building Schools for the Future programme.
Fells acknowledged that the PFI had not always been a success. ‘There’s no point denying that things have gone wrong, but the model has changed over time to make sure it does deliver value for money and that it’s fair on both the public and private sector,’ she said.
The CBI held its annual conference this week and was addressed by all three main party leaders. Prime Minister Gordon Brown said the government would support the economy until private sector recovery was established and ‘we will ensure that nothing we do will jeopardise that recovery’.
