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

  1. Press notices and reports are available from the date of publication on the NAO website, which is at www.nao.org.uk. Hard copies can be obtained by using the relevant links on our website.
  2. The National Audit Office reported on the overall Waste Infrastructure Delivery Programme in 2009. https://www.nao.org.uk/report/department-for-environment-food-and-rural-affairs-managing-the-waste-pfi-programme/
  3. 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.

Contact

NAO Press Office (Angharad Thomas)
Tel. NAO Press Office: +44 (0)20 7798 7400 Email: pressoffice@nao.gsi.gov.uk

PN: 30/14