A.63 Respondents expressed a range of views on the degree of financial transparency required for future projects, although overall greater transparency was favoured. Respondents who favoured greater transparency supported the use of open book arrangements and felt that there should be full transparency through all phases of the project. Others considered that the Freedom of Information Act (FOIA) should be extended to the private sector. Some felt that the objective of improved transparency could be achieved through public sector investment in projects.
A.64 Other respondents felt that the current transparency arrangements are satisfactory. Respondents who did not favour increased transparency said that commercially sensitive information should not be made available due to the potential implications this may have, and that the FOIA should not be extended further.
A.65 There was a wide range of comments on the potential extension of project information requirements. Some respondents said that sharing of periodic financial reporting by SPVs was acceptable and that sub contractors should be subject to full disclosure; that financial reporting information should be available on demand to the public sector and that there should be formal monthly meetings with the SPV.
A.66 Other respondents felt that current information requirements were appropriate and to go further would risk commercial sensitivity. These respondents felt that transparency should not be extended down the supply and investor chains. It was considered that the public sector should not have further information from sub contractors as information on sub-contractor outturn costs was highly commercially sensitive. It was also considered not viable to require financial reporting and disclosure from the sub contractors and that such publication could undermine the entire market.
A.67 A number of respondents supported public sector involvement in project governance. Some respondents only agreed with this view if public sector equity were involved, so that the authority had a stake in the delivery company. Other comments included that a liaison committee could help with project governance.
A.68 Other respondents said that public sector participation in governance would cause conflicts of interests on some issues and that a different approach to project governance was not the solution to improve transparency. Some respondents considered that provided the project was performing as agreed at contract close, there should be no need for public sector governance over and above usual arrangements.