Private Finance Initiative
Written parliamentary questions to the Chancellor of the Exchequer

Source: Hansard

Mr. Dai Davies: To ask the Chancellor of the Exchequer pursuant to the written ministerial statement of 3 March 2009, Official Report, columns 47-48WS, on Government infrastructure investment, what reduction in fees agreed with private sector companies for the delivery of Private Finance Initiative (PFI) contracts will arise from the decision that certain PFI schemes are to receive Government loans in lieu of debt finance. [262648]

Yvette Cooper: It is intended that the Government will lend to PFI projects on commercial terms, alongside other commercial lenders and/or the European Investment Bank.
Mr. Philip Hammond: To ask the Chancellor of the Exchequer pursuant to the written ministerial statement of 3 March 2009, Official Report, columns 47-48WS, on Government infrastructure investment, whether underspent and unallocated funds from one department may be used to fund another department's private finance initiative infrastructure projects. [262784]

Yvette Cooper: Funding for lending to those PFI projects that cannot raise sufficient debt finance on acceptable terms will be provided from across Government, including initially from unallocated funds and departmental underspends on previous projects. The exact funding requirements will be determined by market conditions. Where necessary, the Treasury will provide additional resources funded from additional borrowing. An update will be provided at the Budget.

Mr. Philip Hammond: To ask the Chancellor of the Exchequer pursuant to the written ministerial statement of 3 March 2009, Official Report, columns 47-48WS, on Government infrastructure investment, what his most recent estimate is of the amount of underspent and unallocated funds for each department available to provide additional finance for public infrastructure projects. [262785]
Yvette Cooper: Government Departments have set aside funding for a number of projects. An update will be provided at the Budget.

Mr. Philip Hammond: To ask the Chancellor of the Exchequer pursuant to the written ministerial statement of 3 March 2009, Official Report, column 47WS, on Government infrastructure investment, whether the proposals will require state aid clearance at EU level. [262793]

Yvette Cooper: Article 87(1) of the EC treaty sets out criteria for a state aid to be present.
The Government will lend to private finance initiative (PFI) projects on commercial terms, alongside other commercial lenders and/or the European Investment Bank.

Mr. Philip Hammond: To ask the Chancellor of the Exchequer what steps he has taken to obtain EU state aid approval in respect of his proposals to provide debt finance to providers of private finance initiative projects. [263571]
Yvette Cooper: I refer the hon. Member to the answer given on 13 March 2009, Official Report, column 807W.

Gregory Barker: To ask the Chancellor of the Exchequer what recent assessment he has made of the availability of private finance initiative credits for energy infrastructure projects. [265209]
Yvette Cooper: PFI credits were assigned to Departments as part of the comprehensive spending review, and its predecessors, to support PFI projects in local authorities. None were made available for energy infrastructure as policy in this area is conducted at a national rather than a local level.

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