Government office move suspended

The finance plan has been suspended

A major private finance initiative (PFI) which is to see 65 government buildings taken over by the private sector has been suspended.

The Department of Finance said the procurement stage of Workplace 2010 would be suspended until early 2009.

There has been increased speculation that both bidders for the project could be coming under single ownership.

Workplace 2010 is a major accommodation project in support of reforms across the Northern Ireland Civil Service.

It aims to create a modern, flexible working environment and to support new working practices.

A spokesman for the department said the suspension would give them "time to assess the impact of recent changes in the financial and property markets".

"The minister continues to affirm the importance of the Workplace 2010 principles, and the NICS remains committed to creating a modern, flexible working environment that will enable the delivery of better public services," he said.

The department said that both bidders were in agreement with the move.

The PFI sees the buildings being transferred to a private sector partner in return for a capital payment.

The partner will then be responsible for investing in a major refurbishment programme, moving staff and maintaining the properties during the lifetime of the contract.