Public-private deals under review

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Private investment in Welsh public projects such as roads and hospitals, is lower the rest of Britain.

According to figures seen by BBC Wales, funding for private finance initiatives (PFI) in Scotland is worth £1,000 per person while in Wales it is £205.

It comes as the assembly finance committee meets to discuss the issue.

The assembly government has ruled out using the schemes to fund health projects which its claimed could suggest Wales is "closed for business".

The finance committee begins reviewing the state of public-private funding in Wales, taking evidence from industry insiders such as consultants KPMG.

It will also hear from the Welsh Local Government Association(WLGA) which is expected to warn that a ban on PFI projects in the health service could give the view that Wales is "closed for business".

PFI FUNDING per person Wales: £205Scotland: £1,001England: £990Northern Ireland: £602

That decision was part of the One Wales agreement signed by Labour and Plaid Cymru when they went into coalition.

In the past, Deputy First Minister, Plaid's Ieuan Wyn Jones had been publically critical of PFI schemes, saying last year that their take-up had been "thankfully quite low in Wales".

However, the assembly government insists there is not a complete ban on PFI schemes.

As assembly government spokesperson said: "It is just one of many finance tools available to us and we will look to using it on a case by case basis when it complies with the principles of One Wales and provides real long term value.

"We have ruled out PFI in the health service because it has not proved value for money, but this does not mean it will be discounted in areas such as transport or affordable housing."

These figures provide a stark illustration of the perils of building our health and education services on such unstable foundations Dr Dai Lloyd, Plaid Cymru AM

Such statements have not impressed some members of Plaid Cymru, including assembly member Dr Dai Lloyd.

He said figures he has obtained show that 24 PFI projects in Wales cost £601m to build, but repaying those investment loans over decades will mean a final bill of £2.6bn.

Dr Lloyd said: "Many schools and hospital in Wales were built with loans secured under PFI agreements where the repayments are up to six times greater than the capital building costs.

"Neath Port Talbot Hospital is a case in point where the loan repayment over 30 years - including maintenance - will exceed £445m, compared with building costs totalling only £66m."

He applauded the decision to halt PFI projects in the health sector, but warned the coalition administration: "These figures provide a stark illustration of the perils of building our health and education services on such unstable foundations."