Summer Adjournment

Lord Evans of Rainow Excerpts

Tuesday 19th July 2011 Commons Chamber

[Graham Evans (Weaver Vale) (Con)]

I really enjoy these pre-recess Adjournment debates, which give us Back Benchers such a useful opportunity to raise issues that otherwise might not get discussed. However, this is a slightly bizarre pre-recess Adjournment debate, given that we shall be back tomorrow to discuss phone hacking.

I want to talk about an issue that is pretty topical, given today’s reports about the Government reviewing private finance initiative contracts to save the taxpayer £1.5 billion. I pay tribute to my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), who has been a thoughtful and tireless campaigner on the issue. We have all heard stories of the catastrophic mistakes made in relation to PFI that have resulted in astronomical costs to the taxpayer. We should also have a debate about another classic example of Labour’s poorly executed attempts to bring the private and public sectors together. I want to talk about private sector contracts with the NHS.

The Cheshire and Merseyside NHS Treatment Centre was located in my constituency, in Runcorn. It was run by private company Interhealth, on a fixed-term, five-year contract between Interhealth and the Department of Health. The contract ended on 31 May, and the terms imposed by the Labour Government mean that the operating contract cannot be renewed. The high-quality care provided at the treatment centre very much fits as part of a modern national health service. The treatment centre is in a new building with high-quality facilities, and it has received excellent patient satisfaction feedback. The centre was also extremely popular locally, as demonstrated by the thousands of constituents who signed a petition opposing its closure.

That shows that, given the right conditions, the private sector can work with the NHS for the benefit of both organisations and the patients. Indeed, I agree with the right hon. Member for Leigh (Andy Burnham), who said when he was Labour’s Health Secretary that we should celebrate the role of the private sector in the NHS. Even if orthopaedics do not return to the treatment centre site in Halton Lea, patients are almost certain still to be treated in the private sector under the “any willing provider” guidance.

However, it is essential that any private sector contracts with the NHS are undertaken for the benefit of the taxpayer. Due to Labour’s poorly thought-out contracts, treatment centres under private ownership were paid a fixed amount regardless of how many patients they treated. The Runcorn centre did okay, and the local primary care trusts did their best to fill it to capacity, but others paid out millions for operations that were never carried out. Private providers were also paid a premium above the national NHS tariff. This is why I strongly welcome many of the aspects of the coalition’s NHS reforms, which will prevent the taxpayer from getting ripped off in bad private sector deals and ensure that patients get better choice and high-quality treatment.

Going back to the local case in Runcorn, the treatment centre building has now reverted to the ownership of NHS Halton and St Helens PCT, which is running a consultation on its future. It is vital that this world-class facility should continue to be used for the benefit of the local area, and I continue to urge my constituents to respond to the consultation to make certain that their voices are heard.