HISTORIC PRESS RELEASE : Robinson re-invigorates the PFI [June 1997]

The press release issued by HM Treasury on 23 June 1997.

Paymaster Accepts Bates Review in Full New Treasury Taskforce to Combine Project and Policy Expertise Private Finance Panel Stood Down and Executive Disbanded 27 Other Recommendations Promise Real Change

Paymaster General Geoffrey Robinson today announced new institutional and policy changes to streamline the Private Finance Initiative:

Launching his programme of action to re-invigorate PFI, he said:

“We promised to re-invigorate the PFI and that is what we have done.  Malcolm Bates has applied a businessman’s mind to this policy and produced specific recommendations which I accept in full.  We have started work today on those where the Treasury leads and will pursue others as an agenda for action.  We will make a reality of the PFI idea.

“Malcolm says the public sector structure must be simplified and responsibilities made entirely clear.  Departments and agencies must be accountable for their own procurement decisions. However, he has identified an immediate need for strong central input to ensure delivery of quality transactions that provide a sound basis for future business.

“To meet this need, I am creating a new Treasury Private Finance Taskforce  – combining project and policy expertise. We will appoint a top class Chief Executive on the projects side who will report direct to me.

“The new Chief Executive will focus on the quality of PFI transactions.  He will be supported by 6-8 Executives from the private sector with direct project management experience and financial skills.  Until now, the Treasury has been involved too late in the process, leading to frustration and increased costs.  The Taskforce will help central government departments and agencies  road-test significant projects for their  commercial viability before procurement begins.

“The Taskforce’s policy side will also have its hands full. Malcolm’s review include specific recommendations to produce rapidly more standardised documentation for key stages of the procurement process.  We want greater certainty wherever it can be provided.

“The Private Finance Panel will be stood down.  I have written to all members today thanking them for their past contribution.  Malcolm Bates acknowledges the immense value that high calibre members made in freely giving their time to meet key players, speak at conferences, write articles and support a growing band of Executives.  However, he felt their on-going role was unclear and was keen to simplify organisational structures.

“Malcolm’s proposal to strengthen departmental Private Finance Unit’s alongside the  new Treasury Taskforce is directly in line with a key recommendation of the 12 point plan published in our business manifesto.  It also takes away the need for Private Finance Panel Executive.  I therefore accept his recommendation that it should be disbanded by the end of September.  Opportunities will, of course, exist within the new
structure for those individuals currently with the Executive who have the skills and experience we now require.

“The agenda for action is detailed, practical and full of common sense.  I am sure it will be welcomed as long overdue by companies and departments who have struggled for too long under previous management.  I am confident that at last we have the foundations on which public and private sectors in partnership can deliver an Initiative to be proud of.”