Construction Products Association tells PFI review to consider new sources of cash
Pension funds, road toll charges and sovereign wealth funds should help pay for infrastructure and public facilities, the Construction Products Association (CPA) has told the government.
The CPA told the government’s review of the private finance initiative (PFI) that additional sources of private cash should be used to fund public assets. Today is the deadline for responses to the consultation.
The association said the value for money of assets should be assessed by considering the benefits they bring over their lifetime and take account of the possibility that they will be built more quickly with private finance.
The association called for greater use of private finance in social housing, the early involvement of key manufacturers and suppliers and more information on the performance of assets so that benchmarks can be set.
Michael Ankers, chief executive of the Construction Products Association, said: “It is essential to find innovative ways of tapping into private sector finance through, for example, pension funds, sovereign wealth funds and road toll charges, so as to help deliver the economic infrastructure that is essential to underpin the growth that we need to turn the economy round.”
The Treasury review comes after two reports by parliamentary committees condemned PFI as inefficient and poor value for money.
The review looks at the roles of the private sector, the government and institutional investors, sharing equity gains, risk allocation and cost reduction.