§ Mr. CousinsTo ask the Secretary of State for Health if he has agreed to the release of conventionally financed capital expenditure to prepare the way for the Newcastle Hospitals Trust Private Finance Initiative scheme. [130829]
§ Mr. Denham[holding answer 17 July 2000]: The consultation draft of a business case relating to the enabling works was received by the National Health Service Executive on 3 July 2000 and is now under assessment alongside the business cases for the later private finance initiative schemes. The National Health Service Executive needs to undertake a full and proper review of the documents in accordance with established procedure to ensure that appropriate approval standards are met. I cannot of course pre-determine the outcome of that review.
The National Health Service Executive has consistently reported its strong support for this scheme, most notably during the approval of the original strategic outline case during 1998, and when the strategic outline case needed approval reconfirmed in 1999 following the increase in the capital cost of the scheme. The National Health Service Executive is well aware of the Newcastle upon Tyne Hospitals National Health Service Trust's recommendation publicly to fund elements of this scheme, and its justification for that approach. However, final confirmation of public funding will be determined following the assessment of the business cases, and taking into consideration the relative priority of all bids upon the capital programme.
The National Health Service Executive is in dialogue with the trust and the Newcastle and North Tyneside health authority on this scheme, and a great deal of work is being undertaken to bring this phase of the process to a conclusion as soon as possible.