22 August 2002
Schools, hospitals and other public-sector organisations should get a share of profits when private finance initiative (PFI) projects turn out to be more profitable than expected, according to the government.
The idea to split extra profits on a 50-50 basis with the private-sector contractor is outlined in a Treasury consultation document. In the past year, government officials have been concerned that private-sector firms have had windfall profits at the expense of taxpayers.
PFI contractors have complained that the bidding process is too long and want it simplified to cut down on costs.
• The document is available online on the PFI website, www.pfi.ogc.gov.uk