Private finance in public-private partnerships (PPPs) should be additional to public finance, complementing the resources available to the Northern Ireland Executive in funding investment in public services infrastructure – not the recommendation of lawyers who delight (as some would believe) in the extraordinary amount of documentation required to complete a PPP Project, but the recommendation of the Working Group established last year by the Northern Ireland Executive to review the opportunities for public-private partnerships in the province.
The Working Group’s recommendations, which broadly recognise the need for private finance to improve public services, are not entirely surprising given the current estimated investment deficit faced by the Executive. On the assumption that the current levels of public expenditure funding allocated by HM Treasury to the Executive remain constant for the foreseeable future, the deficit is believed to be approximately £6bn. Just under £14bn is believed to be needed to improve public services in Northern Ireland during the next 10 years. PPPs, including public finance initiatives, are likely to play a major part in addressing Northern Ireland’s serious infrastructure needs in the next few years.
