Oral Answers to Questions
Debate between Robert Jenrick and Simon Kirby(7 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Simon Kirby
The hon. Gentleman makes a fair point, but we should wait until we receive the FCA report before we proceed.
Robert Jenrick (Newark) (Con)
Mr Speaker, you will have seen the latest Office for National Statistics survey that found that Newark is the happiest place in mainland Britain. However, what is testing the people of Newark is the appalling state of their local roads. Will the Chancellor do another favour for Newark, and in his autumn statement bring forward the new Newark northern bypass?
Private Finance 2/Private Finance Initiative
Debate between Robert Jenrick and Simon Kirby(7 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Simon Kirby
I can certainly guarantee that it will be as soon as possible. The thing is we need the data to be able to report on them. Most of these projects are only just starting, so I am sure that we will have it as soon as is reasonable.
The hon. Lady mentions alternatives. I am fortunate to have in my constituency, Brighton Kemptown, a fantastic new hospital being built at nearly £500 million. It is not using PFI or PF2. It is the Royal Sussex county hospital. Each of these projects is financed in different ways, but all projects should provide the best value for money for the taxpayer.
Robert Jenrick (Newark) (Con)
My local hospital and that of my hon. Friend the Member for Sherwood (Mark Spencer) has one of the particularly egregious examples of PFI, signed some time ago. With reference to what the hon. Lady described, that is an example of a hospital with a severe PFI that could be bought back, avoiding some of the inflated interest costs in the years to come. Will the Treasury seriously consider, in this age of incredibly low public borrowing, a 30-year bond, for example, to buy back the most egregious PFI debts, particularly in the case of hospitals, where such debts have a major effect on certain trusts, such as mine? That must be the way to secure best value for the taxpayer in the long term.
Simon Kirby
My hon. Friend raises an interesting point. Projects are financed in different ways. The hon. Lady’s local hospital, Whipps Cross, which is part of the Barts hospital PFI, was bond-financed. Refinancing is far more difficult and far less practical for bond debt. It is safe to say that refinancing of bonds is unlikely to provide value for money. The aim is value for money not only in the financing of new projects, but in changing or varying an existing finance arrangement.