Oral Answers to Questions

Chris Kelly Excerpts

Tuesday 21st February 2012 Commons Chamber

The Secretary of State was asked—

[Chris Kelly (Dudley South) (Con)]

1. What steps he is taking to address levels of PFI debt in NHS hospitals; and if he will make a statement.

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

9. What steps he is taking to address levels of PFI debt in NHS hospitals; and if he will make a statement.

[The Secretary of State for Health (Mr Andrew Lansley)]

The previous Government left 102 hospital projects with £67 billion of PFI debts. We have worked closely with NHS organisations for which PFI affordability is an issue to identify solutions for them, which have included joint working with the Treasury to reduce the costs of PFI contracts. Despite that, some trusts have unaffordable PFI obligations. On 3 February I announced how each of them could access ongoing Government support to help meet those costs.

[Chris Kelly]

I thank my right hon. Friend for that answer. Russells Hall hospital was expanded in 2003, but still has £1.8 billion of PFI debt attached to it—debt which will not be paid off until 2042. What steps is he taking to help reduce the PFI costs for hospitals such as mine that have not been completely crippled by Labour’s PFI and therefore do not qualify for central support, but none the less have high levels of debt?

[Mr Lansley]

I am grateful to my hon. Friend, who illustrates the precise issue with what Labour left. Labour talked of building new hospitals but left this enormous mortgage, in effect, of £67 billion. He refers to Russells Hall hospital, which, like others, is having its contracts reviewed for potential savings following the Treasury-led pilot exercise that I described, which was undertaken at Queen’s hospital, Romford.