government policy: We just want service and value

Spellar told delegates at 'Blair's Billions' PFI conference, that the delivery method of public services was not the issue — the government is simply concerned with the quality of output and services.

He said there is a need to supply a sustainable level of funding and not to provide 'boom and bust' backing.

Spellar said £180bn would be spent in transport alone over the next 10 years. He said the public sector needed 'high quality goods and services on time and on budget' and that it was 'up to British industry to seize the opportunity' .

Spellar said the government would like to see more uptake of modern systems of partnering and procurement.

'There is considerable scope to harness what the industry has to offer,across the board, not just transport,' he concluded.