FIN(3)-PPP-007

Fairlake Properties
Exchange House
The Old Post Office
High Street
Newport   NP20 1AA

Dear Mr Grimes

Evidence into Public Private Partnership Schemes

I am writing in response to your call for evidence into public private partnership schemes.  

Seren Group is a leading housing and care provider based in South East Wales, employing over 750 people and managing 4,500 homes across the region. We work closely with WAG and local authority partners to deliver services to customers across several local authority areas.

We understand that your review into public private partnership schemes will cover a wide spectrum of activities and from a housing perspective, being used to blending public and private funding, can offer examples of how organisations like ours engage with the private sector and add value, whilst understanding the need to balance accountability and risk.

Of particular relevance is our experience of providing key worker accommodation at Royal Glamorgan and Llandough Hospitals through the PFI route.  The benefit to the Health Trusts is that they did not have to raise the initial capital and the deal is structured in a way that keeps the scheme off their balance sheet.  Seren has utilised Health Trust’s land within the curtilage of the hospitals, funded the construction of the accommodation and manages the schemes for 30 years after which ownership reverts back to the Health Trusts.  There is an element of risk sharing but most lies with us.  One of the attractions to the Health Trusts is that they are working with an organisation that is committed to the partnership for the long term.

We believe these schemes are the only ones of this type in Wales and we will be happy to provide more details or make arrangements to visit if you consider this appropriate.

From a wider housing perspective, as local authorities move towards improving their stock and meeting obligations to meet Welsh Housing Quality Standard, there may be merit in investigating a way in which PFI has been used to deliver improvements in some parts of England.  This may provide an alternative to the stock transfer route where tenants have voted against it.

We are very interested in hearing about how the review progresses and would appreciate knowing where we can access updates as they become available.

Yours sincerely

DARRELL BOLTON

Director of Fairlake
Direct Line: 01633 233864
Email: darrell.bolton@fairlake-properties.co.uk