Legal and financial experts at North Wiltshire District Council are trying to find another private finance initiative partner to replace Jarvis, its current partner for its Monkton Park offices.

The council experts are in discussion with the Treasury, Jarvis and other potential PFI partners in a bid to sort out the problems caused by Jarvis' perilous financial state.

Jarvis PLC manages the district council's flagship offices as part of a 25-year lease agreement.

According to a district council briefing note, Jarvis has been in financial difficulty for some time. The company was given extensions to its overdraft and loan facilities, which provided limited financial stability so that they could operate through to March 2005.

Jarvis was required to restructure its operations and reports in the press indicate the company has sold a number of interests, including its interest in the Jubilee Line in London, in a bid to be in a position to trade successfully in the future.

A significant part of the Jarvis business has been PFI contracts and district council officers believe Jarvis is seeking to move out of the PFI market. Consequently it is looking to dispose of its interests in PFI contracts which could mean another PFI company taking over the district council offices.

District council leader Coun Ruth Coleman said: "If the Government lets it go down it would create a lot of concern and lack of confidence. It is likely we will have to look at moving to another private sector partner. We will take the necessary legal and financial advice on this."