Private Finance Initiative Schemes
John Hemming (Birmingham, Yardley, Liberal Democrat)
To ask the Secretary of State for Health
(1) what sign offs are required before a guarantee can be provided by her Department for private finance initiative schemes for NHS foundation trusts;
(2) how much has been guaranteed by her Department for the University Hospital Birmingham NHS Trust private finance initiative scheme;
(3) what the current status is of the proposed University Hospital Birmingham private finance initiative rebuild; and if she will make a statement.
Liam Byrne (Parliamentary Under-Secretary, Department of Health; Birmingham, Hodge Hill, Labour)
The trust's full business case (FBC) has been submitted to the Department for approval; the trust is currently clarifying a number of points which have been raised by the Department. Subject to approval by the Department, the FBC will be forwarded to HM Treasury for approval by officials and Ministers.
In common with other foundation trust private finance initiative (PFI) schemes with a capital value in excess of £10 million, the Secretary of State for Health, the PFI consortium and its funders will sign a deed of safeguard prior to financial close. The effect of the deed of safeguard is to make the Secretary of State liable should the trust be unable to meet its payments to the operator of the PFI scheme.