The Appraisal of Private Financing

  • Grahame Walshe
  • Peter Daffern


The discussion on the sale of Jaguar (Chapter 4) dealt with complete privatisation as an answer to the problem of obtaining efficiency improvement in the public sector. But there are less extreme forms of private sector participation. Parts of departmental services may be contracted out or made the subject of competitive tendering procedures, so that production efficiency is, perhaps in an attenuated form, stimulated by market pressures. Less frequently encountered, but of growing importance in a wide range of public sector areas, is the private sector provision of finance for public sector projects (HM Treasury, 1988). For example, the Dartford Crossing project was mounted with the help of private finance, and the transfer of parts of the local authority housing stock to the private sector has been effected with a significant private finance contribution.


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  1. Devereux, M. (1987) ‘On the Growth of Corporation Tax Revenues’, Fiscal Studies, Vol. 8, May.Google Scholar
  2. HM Treasury (1984a) Investment Appraisal In The Public Sector (London: HM Treasury).Google Scholar
  3. HM Treasury (1984b) Investment Appraisal in the Public Sector: Supplementary Note 1, The Appraisal of Financing Costs (London: HM Treasury).Google Scholar
  4. HM Treasury (1988) Private Finance in Public Expenditure (London: HM Treasury).Google Scholar
  5. HM Treasury (1989) Discount Rates in the Public Sector (London: HM Treasury).Google Scholar

Copyright information

© Grahame Walshe and Peter Daffern 1990

Authors and Affiliations

  • Grahame Walshe
  • Peter Daffern

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