To ask the Secretary of State for Children, Schools and Families what assessment he has made of the likely effect of the economic situation on the delivery of private finance initiative educational projects; and if he will make a statement.
The only educational projects where private finance initiative (PFI) is involved are for school buildings and facilities management.
Market interest in BSF continues to be healthy, and to date, no BSF PFI schemes have been delayed or halted as a result of the current economic conditions. Working with Partnerships for Schools, we are closely monitoring the impact of the current financial climate on the marketability of new PFI projects.
An operational PFI contract could be affected where the private sector partner's ability to deliver becomes affected. Where this has happened in the past, we have worked with HM Treasury to ensure that the authority and its schools continue to benefit from the services promised by the PFI contract.