A second review of the PFI by Sir Malcolm Bates was published in July 1999.16 Among other things, Sir Malcolm recommended that a permanent organisation, Partnerships UK, be formed to replace the Taskforce, whose two-year life was drawing to a close:
The ground breaking Partnerships UK will itself be formed as a partnership, with the private sector taking a majority stake in a joint venture with central government and with a Board Chairman drawn from the private sector. Public sector bodies thinking of entering into PFI deals will be able to use Partnerships UK on a voluntary basis. It will have no monopoly and will seek to win business on the strength of its expertise.17
Partnerships UK, launched in June 2000, replaced the projects arm of the Treasury Taskforce, provision for which was made by the Government Resources and Accounts Act 2000.18 Partnerships UK works both with public and private bodies on specific PPP transactions to improve the process of planning, negotiating and completing PPPs. Its board comprises members from both the private and public sectors. The public's interest is represented through an advisory council, consisting of the main public sector stakeholders in Partnerships UK, such as Peter Gershon, Chief Executive of the OGC.19 In March 2001, Partnerships UK became a public private partnership (PPP) in its own right following the sale to private investors of a 51% stake, the remaining 49% being retained by the public sector. Alan Milburn, then Chief Secretary to the Treasury, said this "would provide the public sector with the key commercial skills to forge increased and better partnerships with the private sector on equal terms." 20
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15 More information on the role and structure of Partnerships UK can be found on their web site: www.partnershipsuk.org.uk.
16 House of Commons Library Deposited Paper 99/1433
17 HM Treasury, Treasury Taskforce, Treasury, Shake-up for PFI and Government procurement plans will save up to £1 billion, News release 124/99, 22 July 1999
18 Partnership UK web site as at 13 December 2001: www.partnershipsuk.org.uk/puk/index.htm
19 A full list of members of the board, the advisory council, the private sector investors and the values of Partnerships UK as at 23 October 2001, appears in Appendix 2 of this Paper.
20 Partnerships UK, Successful Capital Raising for Partnerships UK, news release, 3 April 2001