Wyre Forest's MP, Mark Garnier, today welcomed tough action announced by the Government to save more than £1.5 billion from the Private Finance Initiative. Importantly all of the money saved will go to PFI schemes, including the Worcestershire Royal Hospital and the Magistrates Court in Kidderminster.
In a Written Ministerial Statement delivered to Parliament, Treasury Minister Lord Sassoon laid out Government plans to save more than £1.5 billion on existing PFI deals, and to plough much of that money straight back into frontline public services.
The announcement comes after a series of forensic investigations by Treasury experts into PFI contracts including at the Queens Hospital in Romford.
Mark is part of the PFI Rebate campaign of more than 80 MPs, from all three major parties, who have been calling for savings on the PFI. Mark also spoke in a debate recently on this subject and as an active member of the Treasury Select Committee has been a key contributor to the investigation looking at the possibility of a rebate and the future of this form of investment.
Speaking after the announcement he said: "I am delighted by this news. Our target of £1 billion has been significantly exceeded. The government has listened and taken our campaign very seriously. This announcement will mean real savings right here in Wyre Forest and a real improvement in our local public services.
"The actions announced by the Government are deliberately cautious; they are a long-term solution to a long-term problem. This kind of detailed forensic work may not be glamorous, but it is vital if we are to clear up the economic mess left by the last Labour Government. PFI has a place in government expenditure, but only if it is done at the right price. There are too many examples of poorly written contracts and we need to see change."