PFI Schemes Must Be Transparent

11.27.00am BST (GMT +0100) Tue 27th Jul 2004

Liberal Democrat Shadow Chancellor, Dr Vince Cable MP, has called on the Government to make Private Finance Initiative (PFI) contracts transparent.

Commenting on new PFI spending on health announced today, Dr Vince Cable MP said: "Spending on hospitals using PFI is to be welcomed if building is completed on time and on budget. However, the current and unresolved problems with Jarvis underline the precariousness of PFI contracts.

"Many PFI contracts are entered into for the wrong reasons and often undertaken to keep borrowing costs off the balance books.

"PFI contracts are surrounded by secrecy and confidentiality clauses. It is essential that the Government ensure that contracts are transparent so that we can judge whether they are good value.

"Depending on what happens with Jarvis we may need to have a comprehensive look at how effectively the Government has succeeded in transferring risk and obtaining good value for money from the private sector."