Private Finance Initiative (Hansard, 22 July 1997)

§ 6. Mr. Goggins
To ask the Secretary of State for Health what action he proposes to take to speed up the national health service private finance initiative. [7947]

§ Mr. Dobson
We have already speeded up the NHS private finance initiative. We have given the go-ahead for 14 major hospital projects and passed the first Act of this new Parliament to clear up the law on the operation of the PFI in the NHS.

§ Mr. Goggins
Does my right hon. Friend agree that the best way to speed up implementation of the PFI in the 746 NHS is to ensure that the 14 projects—I am happy to say that one is in my constituency—deliver what they promise? Can my right hon. Friend tell the House what steps he intends to take to monitor the progress of those initiatives and to ensure that the schemes deliver on price and on time?

§ Mr. Dobson
I confirm that we will keep a close eye on the 14 projects to ensure that they get on with the job and stick to the agreed price and time scale. I am extremely glad that the go-ahead has been given for the south Manchester hospital at Wythenshawe in my hon. Friend's constituency.

§ Mr. Paice
I am sure that the Secretary of State agrees that private finance has existed in the NHS through general practitioner services because, over the years, they have invested in their premises to develop a modern and sophisticated service. Is he aware that in rural areas many of those GPs' private investments to enhance the services that they give their patients would be threatened if they lost the opportunity to dispense drugs to their patients because a pharmacy moved into the village? Many such places are at risk, including a major practice in my constituency which is under threat because a pharmacy has moved to the village. The practice could be made bankrupt as a result. Does the right hon. Gentleman agree that there is an urgent need for a review, and action, on the disparity of dispensing rules in rural areas?

§ Mr. Dobson
I am not sure that that issue relates to the private finance initiative, but I share the hon. Gentleman's concern. We have to ensure that the health service is designed to provide the services people need in each particular locality and that we do not try to force a particular model on every part of the country.

§ Mr. Richard Allan
While I accept that the fast-tracking process is a vast improvement on the PH mess created by the previous Government, will the Secretary of State say how much public capital is to be made available to help to pick up badly needed projects, such as the proposed women's hospital in my constituency, which were not selected for the fast track?

§ Mr. Dobson
There are two points to make. We fast-tracked 14 new hospitals, so we managed to achieve in 11 weeks what the Tory party had failed to do in the five-year period since adopting the PFI approach, spending £30 million of taxpayers' money in the process. Because a scheme was not one of the first 14 chosen does not necessarily mean that it will not go ahead under the PFI. In any case, as we have made clear, more than £1 billion a year from the public sector will be available for national health service capital costs.