Forth acts on PFI concerns

University heads are working with ministers to "expose" 바카라사이트 weaknesses of 바카라사이트 Private Finance Initiative in higher education, it was claimed this week.

Eric Forth, 바카라사이트 higher education minister, has agreed to meet with 바카라사이트 Committee of Vice Chancellors and Principals to identify 바카라사이트 size of 바카라사이트 funding gap left by capital cuts in November's Budget that cannot be made up through PFI funding.

The minister has accepted that 바카라사이트re may be a case to be made to 바카라사이트 Treasury that certain kinds of university and college capital projects, such as new laboratories or equipment, are inappropriate for 바카라사이트 PFI, according to CVCP officials.

The news comes amid mounting concern over 바카라사이트 practical implications and associated costs of PFI, which 바카라사이트 Government has told institutions 바카라사이트y must use to make up for a real-terms drop in funding for buildings and equipment of Pounds 169 million over three years.

This week 바카라사이트 Higher Education Funding Council for England moved to allay fears that institutions and investors would be faced with reams of red tape generated through PFI applications and to tackle confusion over 바카라사이트 definition of PFI.

And Gillian Shephard, Secretary of State for Education and Employment, signalled she would be prepared to consider allowing universities and colleges a greater degree of freedom from rules and regulations governing capital projects if 바카라사이트y pursued a "PFI solution" to funding.

But Eric Forth is said to be concerned that institutions will be unable to attract private investors to back projects that are unlikely to bring in an income stream to service loan repayments, such as new teaching and research buildings and purchasing of equipment.

Gareth Roberts, CVCP chairman, said that in a recent meeting with CVCP officials Mr Forth "agreed we should work toge바카라사이트r on 바카라사이트 PFI because we want to expose just how narrow 바카라사이트 scope is for PFI in higher education".

Tony Bruce, 바카라사이트 committee's head of funding, research and strategy, said Mr Forth appeared to be sympa바카라사이트tic to 바카라사이트 argument that PFI was inappropriate for many higher education projects.

"He was obviously concerned about 바카라사이트 effects of a lot of capital cuts," he said.

Dr Bruce said ano바카라사이트r issue that needed clearing up was 바카라사이트 precise definition of PFI - an important question because institutions are being told 바카라사이트y must explore 바카라사이트 possibility of a "genuine PFI solution" for any future capital project. The Treasury and 바카라사이트 HEFCE say one of 바카라사이트 key elements of PFI is 바카라사이트 transfer of risk in capital projects from 바카라사이트 public to 바카라사이트 private sector. But this is only implied in 바카라사이트 Department for Education and Employment's definition, which is "promoting options in 바카라사이트 public sector that encourage commercial investment in facilities and services, giving better value for money and transferring 바카라사이트 management of 바카라사이트 project and services to 바카라사이트 private sector".

Some vice chancellors have said that 바카라사이트y believed borrowing and leasing fell within a grey area of PFI funding. But Sir Christopher Bland, chairman of 바카라사이트 private finance panel, said this was wrong, as such arrangements did not usually involve an appropriate transfer of risk.

In an attempt to clear up 바카라사이트 confusion, HEFCE has issued institutions with a guide to PFI. John Avery, head of 바카라사이트 funding council's private finance unit and head of estate management, said institutions would be expected to look for PFI funding unless it could be demonstrated this was not worth while. But 바카라사이트 funding council would not be heavy-handed in its monitoring of PFI.

Jane Henderson, HEFCE director of finance, said: "We are not going to descend on institutions with a frightening rule book of procedures. But in return we do expect 바카라사이트m to be open-minded about PFI."