PFI privatisation process moves ahead

The Treasury's plan to transform its PFI taskforce into a private sector operator, currently being called Partnerships UK, is shaping up. The search is now underway for a high-profile chairman.

At the same time, it is being said that the new body will need to handle a significant proportion of projects if it is to a serious player. That may see a third of all PFI deals moving through its hand initially.

Still unresolved is the question of conflict of interest. This arises from the new group's remit of both advising on projects and making a return on them for itself.

PFI looks set to be a continuing feature of Government policy. Treasury estimates of future spend are well into billions of pounds, with the major departments involved being local authorities, health and the DETR.

Elliott Chase