13 December 2002
The Institute for Public Policy Research found that official audit bodies had run the rule over only 23 out of 378 completed Private Finance Initiative projects.
It called for a full independent review of the PFI to examine whether the projects offer a good deal when they are signed and they deliver the predicted benefits once they are operating.
Paul Maltby, IPPR research fellow, said: 'In theory the PFI can deliver better-quality services at less cost to the taxpayer, but in sectors such as health and education these expected benefits are in doubt.
'Also, there is currently no evidence about whether the PFI delivers once schemes are up and running.'
The think-tank published research on December 10 showing that the expected benefits of PFI schemes varied from sector to sector.
Prison and road projects have tended to demonstrate value for money, but schools and hospitals have fared less well. National Audit Office research showed that the M1-A1 road design and build contract had an expected saving of 31%.
At the other end of the scale, an Audit Scotland report into PFI schools showed the expected percentage saving on six cases did not rise higher than single figures.
'Where the PFI is shown to deliver poor results, the government should not be afraid to use alternative options, including other types of public-private partnership,' Maltby said.
PFdec2002
