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Treasury

Answer

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer if he will commission a study into the viability of an excess profits levy on the profits made by banks, financiers and contractors on private finance initiative and public private partnership contracts. [211567] Mr. Boateng: The Government are committed to achieving value for money from its PFI programme and keeps all aspects of the programme under review to ensure that this objective is being met. The Government have made clear that PFI should only be used where it is the appropriate to do so and where a full value for money analysis shows that it offers the best value for money in comparison with alternative procurement routes. This value for money analysis and robust competition in the bidding process, both of which were highlighted as key factors in the decision to use PFI in the value for money guidance issued by the Treasury last summer, ensure that the public sector pays a fair price for the services it receives from PFI projects and for the risks which the private sector bears. There are no plans to commission a study into the viability of a special or additional levy on PFI and PPP contracts.

Secondary information

Type

Written question

Reference

211567; 430 c761-2W

Session

2004-05

Subjects

Contracts Private sector Private finance initiative Profits Public private partnerships

Link

View this Written question on www.publications.parliament.uk