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l £4bn of new schemes l New worker consultation l Extension of PFI - 30 PFI schemes get the go-ahead
00:00 28 Oct 1998
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by James Atkinson
A further 30 PFI projects worth a total of £4.25 billion are to go ahead and public sector staff and unions are to be given a greater say in PFI projects the Paymaster-General Geoffrey Robinson announced at a Treasury briefing last week.
A new Treasury Task Force guidance aimed at promoting greater openness in PFI contracts says staff and unions should be allowed to comment on projects and potential bidders, especially where large transfers of public sector staff to the private sector are involved.
Robinson said that the initiative was aimed at satisfying public accountability and to meet union accusations that the PFI process is too secretive. The guide recommends that public sector clients should release as much information as possible on PFI projects and says: "clients should not misuse the term 'commercial confidentiality' as an excuse to withhold information."
The move has been welcomed by both the CBI and the TUC. The TUC is concerned that PFI projects can lead to lower pay and worse conditions and that private sector PFI partners might deny their employees the right to union recognition.
TUC general secretary John Monks said: "Potential PFI partners must engage in genuine dialogue with unions before a contract is awarded. It means that potential PFI partners must explain the implications of their plans for the workers affected and will enable unions to discuss the strategic direction of the bidders' organisations."
The new guidance, Policy Statement No.4: Disclosure of Information and Consultation with Staff and other Interested Parties, says trade unions and staff should be provided with a copy of the broad strategy to be used in tendering before the project is advertised in the Official Journal of the European Community.
If projects involve large staff transfers the public sector clients are then obliged to give unions or staff relevant information on potential bidders at the pre-qualification stage. Staff can then submit comments on the potential bidders, for example, on their employment record.
Robinson pointed out that the consultation process did not give unions a veto, but was designed to give staff a greater involvement in PFI projects.
Robinson also announced the go-ahead for a further 30 PFI projects worth a total of £4.25 billion on top of the £4 billion signed under Labour so far. Schemes include a further £1 billion worth of education schemes, eight hospital projects previously selected for the second tranche of PFI healthcare schemes and two flood defence schemes worth £164 million for the Environment Agency.
He added that good progress was being made on providing standard templates for PFI contracts.
Since publication of draft guidance notes in September, further consultations are underway with the aim of publishing standard templates in February 1999.
A further 30 PFI projects worth a total of £4.25 billion are to go ahead and public sector staff and unions are to be given a greater say in PFI projects the Paymaster-General Geoffrey Robinson announced at a Treasury briefing last week.
A new Treasury Task Force guidance aimed at promoting greater openness in PFI contracts says staff and unions should be allowed to comment on projects and potential bidders, especially where large transfers of public sector staff to the private sector are involved.
Robinson said that the initiative was aimed at satisfying public accountability and to meet union accusations that the PFI process is too secretive. The guide recommends that public sector clients should release as much information as possible on PFI projects and says: "clients should not misuse the term 'commercial confidentiality' as an excuse to withhold information."
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The move has been welcomed by both the CBI and the TUC. The TUC is concerned that PFI projects can lead to lower pay and worse conditions and that private sector PFI partners might deny their employees the right to union recognition.
TUC general secretary John Monks said: "Potential PFI partners must engage in genuine dialogue with unions before a contract is awarded. It means that potential PFI partners must explain the implications of their plans for the workers affected and will enable unions to discuss the strategic direction of the bidders' organisations."
The new guidance, Policy Statement No.4: Disclosure of Information and Consultation with Staff and other Interested Parties, says trade unions and staff should be provided with a copy of the broad strategy to be used in tendering before the project is advertised in the Official Journal of the European Community.
If projects involve large staff transfers the public sector clients are then obliged to give unions or staff relevant information on potential bidders at the pre-qualification stage. Staff can then submit comments on the potential bidders, for example, on their employment record.
Robinson pointed out that the consultation process did not give unions a veto, but was designed to give staff a greater involvement in PFI projects.
Robinson also announced the go-ahead for a further 30 PFI projects worth a total of £4.25 billion on top of the £4 billion signed under Labour so far. Schemes include a further £1 billion worth of education schemes, eight hospital projects previously selected for the second tranche of PFI healthcare schemes and two flood defence schemes worth £164 million for the Environment Agency.
He added that good progress was being made on providing standard templates for PFI contracts.
Since publication of draft guidance notes in September, further consultations are underway with the aim of publishing standard templates in February 1999.
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