Private Finance Initiative
John Hemming (Birmingham, Yardley, Liberal Democrat)
To ask the Secretary of State for Health pursuant to the answer of 8 February 2006, Official Report, column 1325W, on the private finance initiative (PFI), what the net present value is of payments under the PFI contract for (a) Whipps Cross NHS Trust, (b) Peterborough Hospitals NHS Trust and (c) Walsall Hospitals NHS Trust; what the net present value is of the public sector comparator; and how much of the net present value of the public sector comparator is accounted for by the optimism bias.
Jane Kennedy (Minister of State (Quality and Patient Safety), Department of Health; Liverpool, Wavertree, Labour)
At both Walsall and Whipps Cross National Health Service Trusts, the costs of the private finance initiative option are not yet finalised so net present values of payments are not available.
The outline business case for Walsall NHS Trust is on their website at www.walsall.wmids.nhs.uk. This shows at page 97 that an allowance of 15 per cent. has been made for optimism bias at the time of publication (November 2004). Page 107 contains a table with the economic analysis of all the options considered by the trust; the public sector comparator is option six and shows the net present value as £2,670,240,000.
For Whipps Cross NHS Trust, the trust has halted their current scheme. They are in the process of revising their proposals which will then be submitted in a new outline business case. Figures from their previous outline business case are subject to significant change.
Peterborough and Stamford hospitals is a NHS foundation trust and their private finance initiative scheme is also still in procurement. In accordance with protocol on foundation trusts, requests for information on this trust should be directed to their chairman.