HC Deb 02 May 1995 vol 259 cc175-7W
Mrs. Beckett

To ask the Secretary of State for Health (1) what has been the expenditure on(a) establishment and running of the private finance unit, (b) private finance specialists in the regional offices, including the total number so far employed, (c) publishing and distributing the booklets "Public Service, Private Finance" and "Private Finance Guide" in the "Capital Investment Manual", and (d) engaging Newchurch and Company to set up a database and inquiry point in each of the last five years; what is the expenditure in the current year; and what is planned to be spent in each of the next two financial years; [21744]

(2) how many people are employed by each NHS executive office and health authority who are involved in the management and promotion of the private finance initiative; [21999]

(3) what is the total cost of promoting the private finance initiative for the NHS; [21998]

(4) what are the total man hours involved in the management and promotion of the private finance initiative by each NHS executive office and health authority. [22000]

Mr. Simpson

To ask the Secretary of State for Health what initiatives have been undertaken to secure private finance for her Department's projects. [22325]

Mr. Sackville

The private finance initiative will develop further the national health service's excellent record of co-operation with the private sector and ensure new hospitals are provided promptly and run efficiently for the benefit of all national health service patients. An increasing number of support services such as catering, cleaning and maintenance have been contracted out to private firms. This has cut waste and allowed large savings to be used for treating patients—as well as improving the services provided. The PFI increases the scope for savings on capital projects.

Expenditure on the establishment and running of the NHS executive private finance unit was about £55,000 in 1993–94 and about £260,000 in 1994–95—however, detailed expenditure figures are not available at this level. Expenditure in 1995–96 is expected to be about £146,000 plus about £300,000 for consultants who will provide added support for regional offices and the NHS. Expenditure in 1996–97 is likely to he around £150,000.

The number of staff employed by regional offices has not been increased because of the PFI. In 1994–95 private finance specialists in regional offices amounted to about one quarter of a whole-time equivalent post per region with expenditure of approximately £10,000 per region. In 1995–96 this is expected to increase to about one whole-time equivalent with expenditure of approximately £40,000 per region. This will be reviewed for 1996–97.

Expenditure on publishing the information pack "Public Service, Private Finance" was £7,896 plus £1,381.80 VAT. Expenditure by HMSO on publishing the "Private Finance Guide" as part of the "Capital Investment Manual" was £1,865. Itemised costs of distribution are not held centrally.

For information on expenditure on the PFI database run by Newchurch and Company, I refer the right hon. Member for Derby, South (Mrs. Beckett), to the reply I gave the hon. Member for Wakefield (Mr. Hinchliffe) on 27 March, Official Report, column 421. Expenditure agreed for the period April 1995 to September 1995 will be £9,000 plus £1,575 VAT. After this, the contract may be renegotiated and it is not possible to give further expenditure figures.

The NHS executive headquarters will employ five staff—four whole-time equivalent staff.—in 1995–96 in the private finance unit. Each regional office has one contact point for the PFI, but there are no additional staff employed to manage and promote the PFI. In each regional office several staff are involved with ensuring that NHS capital projects are as cost-effective as possible and exploration of private finance is essential in seeking the most cost-effective solutions to NHS needs.

Mr. Simpson

To ask the Secretary of State for Health what percentage of her Department's budget is allocated to initiatives which have been undertaken to secure private finance for her Department's projects. [22324]

Mr. Sackville

The answer is 0.16 per cent.