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Type
House
Session
Year
Department
Member
Primary member
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Dunne, Philip (1)
Answering member
Legislative stage
Legislation
Subject
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Training (1)
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To ask the Secretary of State for Defence what price premium for the Defence Training Review his Department expects to pay in return for transferring risk to the private sector
To ask the Secretary of State for Defence what price premium for the Defence Training Review his Department expects to pay in return for transferring risk to the private sector
Asked by
Philip Dunne
(Conservative)
Answered by
Derek Twigg
(Labour)
Answering body
Ministry of Defence
Type
Written questions
Status
Answered
Tabled on
23 January 2007
For answer on
23 January 2007
Answered on
23 January 2007
The concept of PFI passes risk to a private sector partner who is better able to manage these risks. The primary determinant of whether to proceed with a PFI approach is the assessment of the value for money of the bidder's proposal against a public sector comparator on a whole life, risk adjusted basis. MOD relies on open competition to drive out value for money and ensure that any price premium paid is appropriate for the risk transferred.
Subjects
Armed forces; Defence; Training
Date
23 January 2007
Reference
116273; 455 c1629-30W
House
House of Commons