2.15 In setting their objectives for dealing with the financial difficulties at NATS, the Department recognised that any settlement could have implications for wider government policy for Public Private Partnerships. They were conscious of the "moral hazard" risk; that if they were perceived to be rescuing the company this could create a poor precedent for other Public Private Partnership deals. It would be a serious matter if private sector companies received the impression that the Government would ultimately "bail out" partnerships that got into trouble, even where vital public services are at stake. The Department, backed by the Treasury, stated that while the other participants may have perceived the Government as the first in line to provide a solution, this was not the Government's view. They had been willing to engage in a process but not to underwrite the funding gap. This position was made clear at all times when the Government was put under pressure to act otherwise.