Yesterday, Parliament’s Children, Schools and Families Select Committee took further evidence on the BSF programme. Witnesses included the Graham Watts, Chief Executive of the Construction Industry Council, as well as Minister Jim Knight and Tim Byles of Partnerships for Schools.
The subject of funding for BSF building projects inevitably came up. Judging by this morning’s media coverage – the transcripts aren’t available yet – Graham Watts, representing the builders, made some useful and balanced comments. As you’d expect from someone speaking on behalf of the construction industry, he reminded the Committee that builders need continued access to funding. His words have been seized upon by some commentators as evidence of problems in the scheme.
The response from Partnerships for Schools is:
Despite what continue to be challenging economic conditions, 2009 has begun on a more positive note for BSF than anticipated, with over half a dozen banks indicating they are in the market to finance senior debt in BSF schemes. In addition, we are seeing interest further afield than the banking sector, with Norwich Union keen to enter the market.
We have also secured a commitment in principle from the European Investment Bank of £300m support to BSF schemes that have a PFI component, and are in ongoing discussions with EIB about extending this level of support, including to smaller schemes.
Against this backdrop, BSF continues to deliver. Deals have closed throughout the autumn and pre-Christmas and now on into the New Year, with the latest deal to close today in Tower Hamlets, bringing us to a total of 28. Nearly a third of all secondary schools in England are now engaged in BSF, and with our 50th school having now opened, we are ahead of our delivery schedule for the current financial year.
Jim Knight reiterated the DCSF’s commitment to the programme, saying:
The Government commitment is absolutely steadfast to BSF.
