Question reference: S1W-00471
- Asked by: Michael Matheson, MSP for Central Scotland, Scottish National Party
- Date lodged: 8 July 1999
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Current status: Answered by Jack McConnell on 2 August 1999
Question
To ask the Scottish Executive what impact its announcement of 24 June 1999 in relation to Private Finance Initiatives (PFI) will have on the five PFI projects agreed by Falkirk Council.
Answer
Those improvements to public private partnerships I announced on 24 June which relate to matters covered by contract will have no impact on the Falkirk Council scheme for the construction of 5 new schools. This is because, with the exception of the announcement on pension provisions, these changes took effect from 24 June and will not be applied retrospectively. It is worth noting however, that the Council has an option to purchase the schools at market value, capped at £5 million, at the end of the initial contract, if it wants to do so.The provisions for better protection for staff pensions came into effect on 14 June. I promised to publish more financial information for PFI projects on a sector by sector basis and have already made details of estimated service payments available in answer to a question from Andrew Wilson (S1W-00357). Figures for the Falkirk project were included in the local authority sector.