Private Finance Initiative

Part of Oral Answers to Questions — Treasury – in the House of Commons at 12:00 am on 25th January 2001.

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Photo of Stephen Timms Stephen Timms The Financial Secretary to the Treasury 12:00 am, 25th January 2001

I can reassure my hon. Friend that value for money is the key consideration in choosing between private finance and conventional public procurement. Under the arrangements that currently apply, the Arthur Andersen/London School of Economics study showed that private finance initiative solutions are beating their public sector by 17 per cent. on average. For example, six of the 38 hospital projects currently under way in the biggest hospital building programme that the NHS has ever had are conventionally funded. In each case, the choice is made on precisely the basis of value for money that my hon. Friend advocates. That is the right approach, and we have taken it.