Treasury offers advice on deals with private sector

4 Nov 99
The government has issued guidance on how to judge whether a Private Finance Initiative (PFI) deal makes sense or not.

05 November 1999

The Treasury criteria, on how to assess the long-term cost of PFI bids against those from alternative public sector sources, was drawn up after consultation with the National Audit Office and PFI contractors.

Andrew Smith, chief secretary to the Treasury, said that the guidance – Technical Note 5, entitled How to construct a Public Sector Comparator, would provide consistency and clarity for everyone involved in PFI schemes in the public services.

'The government's purpose in using the PFI route is to improve public services in ways that offer value for money,' he said. 'Where PFI is unlikely to achieve these aims, services will be provided by direct capital investment.

'The new guidance will ensure greater consistency in decisions about PFI.'


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