PFI: the STEPS Deal: Twentieth Report of Session 2004-05; Report, Together with Formal Minutes, Oral and Written Evidence
The Stationery Office, Jun 14, 2005 - Business & Economics - 34 pages
This report from the Committee of Public Accounts looks at the PFI deal struck between HM Customs and Excise and the Inland Revenue, in April 2001, when it transferred the ownership and management of most of their estates to Mapeley, a private sector consortium. The deal was to provide a reduction in costs, particularly in having the ability to vacate up to 60% of the estates, with residual lease costs being borne by Mapeley. The contract was won by Mapeley because it offered a cheaper bid, based on speculative returns from the increases in commercial property values over a 20-year time period, also it believed it would win other business contracts to increase profits. Once the PFI contract was signed the freehold and long-leasehold properties were transferred to a company based in Bermuda. Because of the implications for capital gains tax and a later request from Mapeley for additional money, The Committee makes a number of recommendations on how the contract could have been better handled by the Department.
What people are saying - Write a review
We haven't found any reviews in the usual places.
170 million 55 million Angela Browning answer Aspire contract assets Bacon benefit of hindsight buildings C&AG's Report Chairman civil service Committee of Public contract management contractor costs Customs & Excise Customs and Excise David Varney Departments and Mapeley Development Gain Edward Leigh estates team Excise and Mapeley Facility Price Gerry Steinberg Ghosh health and safety Helen Ghosh HMRC hold the properties Hopkins Ian Davidson in-house Inland Revenue Inland Revenue/HM Customs issues Jenkins Jim Sheridan Jon Cruddas Jon Trickett look Mapeley contract Mapeley STEPS Mapeley's McHale MP Labour NAO Report negotiations paragraph payment performance measurement system PFI deal Private Finance Initiative private sector problems procurement process properties offshore Public Accounts public sector comparator question Revenue and Customs risk says shareholders Siobhan Sir Nicholas Montagu Solicitors Legal staff Steinberg STEPS Contract STEPS deal talking value for money Varney Williams