Public Expenditure

Part of the debate – in the House of Commons at 5:34 pm on 6 March 1997.

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Photo of John Prescott John Prescott Shadow Secretary of State, Deputy Leader of the Labour Party, Member, Labour Party National Executive Committee, Deputy Leader of the Official Opposition 5:34, 6 March 1997

My hon. Friend makes a telling point. The Secretary of State for Transport, in his letter to the Prime Minister, was concerned about whether the money was to go to the Treasury or to his Department, or to be used for investment; that was the heart of the letter, and we shall watch any developments with interest.

Usually the Government take the line that the private finance initiative principle should be extended. We have all discussed the PFI, but the Government have not been very successful in implementing it, and certainly not on the scale that they envisaged. As I understand it, the financial agreement for the hospital that was announced at the last Budget—we were promised one every month at the time of the Budget before last—has not yet been completed. Perhaps the Chief Secretary can tell us whether the financial agreement for the first hospital has been completed.