Laura Sharman 17 September 2014

MPs slam PFI waste projects

The funding agreements for ‘lax’ PFI waste projects have been criticised in a report from the spending watchdog.

A report from Public Accounts Committee (PAC) found that ‘poorly drafted’ contracts signed by the old Department for Environment, Transport and the Regions meant three councils were given millions in grants even though facilities have yet to be built.

It revealed that councils had received £213.5 in grants from Government over the past 15 years with no main waste assets to show for the funding.

Margaret Hodge MP, chair of the Committee of Public Accounts, said: ‘It is appalling that lax, poorly drafted PFI funding agreements to support the building of local authority waste processing plants have led to hundreds of millions of pounds worth of grants being made to three councils even though the main waste assets – such as incinerators – have not yet been built.’

It calls on Defra to ensure they only pay for what is delivered in the future and act with urgency if it has concerns over a project’s progress. It also recommends it works with local authorities to improve their contracting capability and help them negotiate better value PFI contracts.

Ms Hodge added: ‘Long PFI contracts that typically last 25-30 years may be inappropriate for the waste sector where technology is continually evolving and the amount of waste that will be produced in the future could be hard to predict.

‘The Department has more work to do to improve local authorities’ contracting capability, especially for PFI projects, and ensure that they only pay for what is delivered in future without getting locked into long, inflexible contracts.’

SIGN UP
For your free daily news bulletin
Highways jobs

Assistant Finance and Business Development Manager

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,976 - £49,365 per annum
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Senior Occupational Health Advisor

Durham County Council
£44,075 to £48,226 p.a. (Grade 12) pay award pending
Due to increased service demand we have an exciting opportunity for an additional Senior Occupational Health Nurse to join our well-established in-hou Durham
Recuriter: Durham County Council

Social Worker

Durham County Council
£35,412 - £39,152 / £40,777- £45,091 pro rata i.e. grade 9 pre progression/grade 11 post progression
We seek a full-time, permanent Social Worker who is calm under pressure and passionate about improving the lives of service users. WHAT IS INVOLVED? Durham
Recuriter: Durham County Council

Young Person's Advisor

Durham County Council
Grade 8 - £32,597 - £36,363
X1 Young Person’s Advisor – Full-Time (Temporary for 12 months) An exciting opportunity has become available within the Unaccompanied Asylum-Seeking Spennymoor
Recuriter: Durham County Council

Sufficiency Support Officer

Durham County Council
£28,142 - £31,022
Do you want your work to make a real difference to the lives of children and young people in our care?   This is a brilliant opportunity to join a new Spennymoor
Recuriter: Durham County Council
Linkedin Banner