PRIVATE FINANCE INITIATIVE AND TAX AVOIDANCE

That this House notes the concerns expressed in reports made by both the Public Accounts Committee and the Treasury Select Committee regardingevidence of tax avoidance being practised by companies who successfully bid for Private Finance Initiative (PFI) contracts and then move their assets overseas; further notes that the Treasury Green Book requires Government Departments to assess the value for money of PFI as a method of procurement using an estimation of the tax revenue which is generated; is concerned that such evidence calls this calculation into question; is further concerned to note that despite committing to 7 billion worth of PFI deals in March 2011 using this method to analyse their value for money the Government has no proposals to address this problem with its calculations; further notes the possible consequences to the accuracy of Government procurement decisions as a result; and calls on the Government to place a suspension on its PFI programme until it brings forward proposals to respond to the concerns of these two committees on this matter.