Oversight of three PFI waste projects
17 Jun 2014 01:49 PM
Full report: Oversight of three PFI
waste projects
The
National Audit Office has today published a report on oversight of three local
authority PFI waste contracts by the Department for Environment, Food and Rural
Affairs. The three contracts were entered into by Surrey County Council, by
Norfolk County Council and, jointly, by Herefordshire Council and
Worcestershire County Council.
All
three projects have experienced significant delays stemming from a range of
problems, including difficulties obtaining planning permission, complex
commercial considerations, opposition from local groups and uncertainty over
technology.
It
was clear from correspondence received by the NAO that there was a lack of
clarity over both the facts and figures relating to these three projects, and
the roles and responsibilities of the parties involved.
Today’s report finds that the Department has given
good support and guidance to the local authorities involved, but that the
nature of the Department’s funding agreements with Surrey and
Herefordshire and Worcestershire, which the Department inherited from
predecessor departments, made it difficult for it to withdraw or amend its
financial support to these contracts, even when significant infrastructure had
not been delivered as planned.
The
NAO has not sought to conclude on the value for money of the three contracts as
these matters are for local authorities’ auditors to examine. Nor does it
examine the value for money of the overall Waste Infrastructure Delivery
Programme managed by the Department. The report sets out the roles and
responsibilities of the parties involved in the three contracts and examines
those issues over which the Department for Environment, Food and Rural Affairs
has direct influence or involvement.
Today’s report will form the basis of a hearing of
the Public Accounts Committee.
June 2014
Notes for
Editors
- Press notices and reports are available from the date of
publication on the NAO website, which is atwww.nao.org.uk.
Hard copies can be obtained by using the relevant links on our
website.
- The
National Audit Office reported on the overall Waste Infrastructure Delivery
Programme in 2009.http://www.nao.org.uk/report/department-for-environment-food-and-rural-af
fairs-managing-the-waste-pfi-programme/
- The
National Audit Office scrutinises public spending for Parliament and is
independent of government. The Comptroller and Auditor General (C&AG),
Amyas Morse, is an Officer of the House of Commons and leads the NAO, which
employs some 820 staff. The C&AG certifies the accounts of all government
departments and many other public sector bodies. He has statutory authority to
examine and report to Parliament on whether departments and the bodies they
fund have used their resources efficiently, effectively, and with economy. Our
studies evaluate the value for money of public spending, nationally and
locally. Our recommendations and reports on good practice help government
improve public services, and our work led to audited savings of almost
£1.1 billion in 2013.