§ Mr. Milburn
The review of the private finance initiative (PFI) in the national health service, announced on 15 May 1997, consists of three stages. The first stage, to secure the market for PFI, involved the prioritisation of certain major acute sector PFI schemes. The results of this part of the review were announced on 3 July. The remaining stages of the review are expected to be concluded by the end of the year.
The review is being carried out by officials and consultants seconded to the NHS as part of their normal duties. No extra costs over and above these normal departmental running costs are envisaged.
§ Mr. Milburn
[holding answer 11 July 1997]: Two private finance initiative schemes, at Dartford and Gravesham national health service trust and Norfolk and Norwich health care NHS trust, have reached agreement to proceed to financial close. The consortia and constituent companies for these two schemes are as follows:
Trust Consortia Constituent companies Dartford and Gravesham NHS Trust Pentland Tarmac PFU Ltd. United Medical Enterprises Ltd. Tarmac Service Master Tarmac Construction Ltd. Norfolk and Norwich Health NHS Trust Octagon Healthcare Ltd. John Laing Group plc Serco
A further 14 major hospital PFI schemes have been selected to continue towards financial close under the first prioritisation exercise announced on 3 July. Those 23 schemes not selected had the opportunity to make representations to my right hon. Friend the Secretary of State for Health up to 14 July and all appeals are now being reviewed. However, all schemes not selected will now be eligible for consideration by the NHS Executive's capital prioritisation group to go forward either as part of the next tranche of PFI schemes or for funding from public sector capital. Six schemes are being considered as part of the London review.