The BBC Business website ( http://www.bbc.co.uk/news/business/ ) reports that there are significant concerns that HM Treasury is failing to monitor PFI projects adequately and that excessive profits have been made by organisations involved in the PFI market. HM Treasury records do not reflect the billions of ponds of profit made by companies by selling on their equity shares in PFI projects on the secondary PFI market. These concerns regarding the transactions and those surrounding the lack of information at HM Treasury come as two parliamentary committees are convened to take an in-depth look at the PFI.
The Treasury Committee is hearing evidence in connection with its enquiries into the future of PFI, the objective to determine whether PFI has represented value for money for the taxpayer. Shortly after the Public Accounts Committee will investigate what can be taken from the experience of the roll-out of PFI and what improvement could be made for any future projects that may be undertaken.
Opinions run high on both sides of the discussion, with a number of members of Parliament declaring that the PFI process must be clear and transparent with levels of profit reflecting genuine return on investment and, of course, demonstrating good value for money for the public purse. The Public Private Partnership Forum, an industry body for the PFI industry, has said the profits made were a fair reflection of the risks taken on by the financiers and builders of the projects.
More than 700 hospitals, schools, prisons and other public sector projects have been built under the PFI scheme.
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