§ Mr. Simon Hughes
To ask the Secretary of State for Scotland if, for each of the major acute PFI schemes prioritised by his Department since May, he will(a) list the capital cost in the outline business case, (b) estimate the current cost and (c) state the percentage change. 250W
§ Mr. Galbraith
[holding answer 18 December 1997]: The information requested is set out in the table.
1 2 3 4 NHS Trust Capital cost in OBC1£ million Capital cost in OBC at current prices2£ million Latest estimated capital cost at current prices3 £ million Percentage change between columns 2 and 3 Royal Infirmary of Edinburgh 174.5 186.5 188.5 1.1 Law Hospital 78.6 84.9 85.0 0.0 Hairmyres and Stonehouse Hospitals 52.4 66.0 66.1 0.2 1None of the projects prepared outline business cases (OBCs) since the projects were initially developed along the lines of public funding. Figures have been taken from the nearest equivalents. 2 Figures in column 1 have been uplifted to current prices using the BCIS index (to 4th Quarter 1997). 3 Figures are gross of sales of surplus land and include the costs of land (except in the case of the Royal Infirmary of Edinburgh), construction and professional fees but exclude the cost of equipment (other than items which are supplied and fixed under the terms of the construction contract), VAT, rolled up interest and financing costs. Figures are based on current prices.
The capital cost of a scheme in the OBC (or equivalent) is not necessarily comparable with the capital cost of the facility provided under the PFI. The capital cost in the OBC is based on the scheme being funded from limited public capital whereas under PFI the same constraints on capital do not exist. PFI allows Trusts to develop schemes which transfer risks from the public sector to the private sector and offer the best value for money to the taxpayer.
Only the projects that prove to be affordable to the healthcare planners, value for money to the taxpayer and offer real healthcare improvements to the public will proceed under PFI.