PFI and CTRL questions for Parliament

by Patrick Reynolds



A Conservative MP tabled three questions to Parliament last week following news stories in Contract Journal.

Nick Gibb tabled two questions seeking data on decisions made in Private Finance Initiative schemes and one question on the Channel Tunnel Rail Link. The CTRL question seeks data on the risk analysis done on the likelihood of the Government bond guarantees being called.

The move by the MP, who sits on the Treasury Select Committee, follows CJ's story on the Government plan to release more information on construction contracts (CJ 29 July).

Roads minister Lady Hayman said that all future contracts would be publicly available documents and withholding commercially sensitive data would be the exception rather than the rule.

Gibb is concerned about the lack of public information on PFI and the Government's financing solution for CTRL. He wants to find out if the Government's proposed openness on roads extends to data on the choice of PFI schemes and the details of final deals as well as the financial risk analysis on CTRL.

Deputy Prime Minister John Prescott said that the risk of the Government guarantee being called is "very low" when he announced the CTRL rescue package in June.

The guarantee covers £3.7 billion worth of bonds to be raised by the developer - the reincarnated London and Continental Railways.

Prescott said that the risk of the guarantee being called had been checked with the Office of National Statistics. He said it fell below the threshold for counting towards the national debt through the Public Sector Borrowing Requirement.

Gibb is not satisfied with the Government's assurance. He said that City sources were surprised by the Government's move to guarantee bonds.