PPP/PFI may end under Tory rule

The use of PPP/PFI under a future Conservative administration has been brought into question after shadow construction minister Mark Prisk said the procurement route would come under scrutiny if the party was elected.

Prisk made the revelation during an interview with CJ when he was asked whether the Conservatives were committed to PPP/PFIs.

“I think that bringing in private investment has its merits. However, these schemes have become more and more complex and more and more expensive. We need to test whether they pass the value for money test. We will do that by asking Treasury to open up the books for scrutiny. We will then make a decision,” Prisk said.

Prisk’s position will raise questions within the industry over whether there will be a moratorium on PPP/PFI schemes should the Conservatives come into power while they go through the books; the same moratorium was experienced when the Labour Party came into power in 1997.

Questioned on other areas of change, Prisk revealed there would be a radicalisation of procurement if elected. “We want one common route, which will be based on a fair proportion of risk placed on both the client and the industry,” he said.

Prisk was unable to commit to eliminating retentions: “I am not against getting rid of them. How-ever, I would need to look at the outcomes of the Construction Act review before making a decision.”

On a positive note, Prisk said if elected he would make it his mission to reduce the burden on the industry. This would include looking closely at Building Regulations.

[Contract Journal, 18 October 2006, p 2]