I have launched a campaign with fellow MPs to consider the possibility of renegotiating certain Private Finance Initiative (PFI) contracts.
PFI is the funding of public buildings such as schools and hospitals with a combination of public and private funds – it was an option the last Government used to finance hundreds of new building projects. Northampton has one of the biggest PFI contracts in Europe that saw the rebuilding and refurbishment of over 70 schools.
A group of MPs have launched a campaign to persuade PFI providers to look again at the contracts in these difficult economic times. More flexibility in terms would help Northampton's schools to do more out of normal school hours and would be a benefit to the community. Renegotiating contracts would also help those schools in Northampton that want to consider converting to Academy status.
Along with Brian Binley, MP for Northampton South and Michael Ellis, MP for Northampton North, I have written to Northamptonshire County Council to obtain more information on Northampton's PFI contracts. The campaign will be looking to arrange a debate in the House of Commons soon.
I have also tabled Written Parliamentary Questions to the Treasury asking what plans they have to secure savings for the taxpayer by renegotiating PFI contracts. Rt. Hon. Danny Alexander MP, Chief Secretary to the Treasury and number two to the Chancellor has responded saying that PFI projects are not immune from the process of cutting the deficit and the Treasury has had discussion with 'major equity holders and other key industry players.
There is no doubt that Northamptonshire has benefitted from the new school buildings under PFI but the deals struck have not always given flexibility of use and in difficult economic times it would be good to see PFI providers doing their bit for local people.
PFI debt in Britain is yet another millstone around the neck of taxpayers and yet another example of Labour's spend now, pay later legacy. I want to see PFI providers recognising the mess we are in and showing some support for the taxpayer by showing a willingness to look again at these contracts.
For more information on the PFI campaign visit www.pfi-rebate.org.
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