Written question asked by Harry Cohen (Labour) on Thursday, 18 January 2001, in the House of Commons. It was due for an answer on Tuesday, 23 January 2001. It was answered by Andrew Smith (Labour) on Tuesday, 23 January 2001 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, what guidance he has issued to other departments about the rights to receive windfall profits as part of Private Finance Initiative deals; and how many departments have agreed such deals (a) in accordance and (b) not in accordance with such guidance. - Inc ref to Treasury Taskforce publication 'Standardisation of PFI Contracts', in Library.

Answer: Mr. Cohen: To ask the Chancellor of the Exchequer what guidance he has issued to other Departments about the rights to receive windfall profits as part of Private Finance Initiative deals; and how many Departments have agreed such deals (a) in accordance and (b) not in accordance with such guidance. [146839] Mr. Andrew Smith: Guidance on the refinancing of PFI projects is contained in the Standardisation of PFI Contracts publication produced by the Treasury Taskforce in 1999. This was supplemented by Treasury guidance in July 2000 which alerted Departments to emerging issues in this area; and by guidance from the Office of Government Commerce in November, which proposed that Departments seek an equitable share of refinancing benefits where their consent was required, and where the contract did not cover the terms of that consent. The OGC expects to publish further guidance shortly. Detailed contractual information is not held centrally.

Secondary information

Type: Written question
Reference: 361 c567W;361 c569W; 146839
Session: 2000-01
Subjects: Contracts Codes of practice Private sector Public sector Private finance initiative Profits
Contains statistics: Yes
Link: View this Written question on www.publications.parliament.uk