12. Is there an optimal mix between conventional public procurement and Private Finance for public sector investment? What is the long run role of private finance in the delivery of infrastructure both in the UK and globally?
12.1 As above, the LIFT model clearly offers a public-private partnership route yet we would argue there is no optimal mix between conventional public procurement and PF/PPP-this decision must be based on pragmatism and value for money. The more choice of models that exist, the better the chance of achieving value for money. The key challenge will be for the public sector to understand which is best over the short, medium and long terms.
12.2 A crucial point as the Government looks to reduce public debt is that there must be a move towards bringing in yet more private sector capital to support service delivery so that frontline services do not suffer. Private finance looks to be here to stay as it seems unlikely that the Government will in the future have access to the levels of public capital that are required to deliver the requisite public infrastructure and in the case of LIFT, high-quality primary care and community facilities.
September 2009