§ Mr. WallaceTo ask the Secretary of State for Scotland if he will list the Scottish health projects which were pursuing experimental private finance initiative funding as at 22 June; and if he will indicate the sum spent to date in respect of preparatory work for each project. [5992]
§ Mr. Galbraith[holding answer 30 June 1997]: Proposals for capital projects which were exploring the PFI route as at 22 June this year and on which information is held by the Department are as listed. It should be noted that projects are considered for PFI only alter outline business case approval. In addition there are other smaller projects developed on the same principles which fall within trust and health board delegated limits and for which information is not held centrally.
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Health board/NHS trust Project description Capital value (£ million) Royal Infirmary of Edinburgh NHS Trust Relocation of major acute teaching hospital 175 Law Hospital NHS Trust Hospital 100 Hairmyres and Stonehouse Hospitals NHS Trust New major acute hospital 63 Victoria Infirmary NHS Trust Provision of geriatric beds at Mearnskirk 2 Ayrshire and Arran Community Healthcare NHS Trust Community Hospital (Cumnock, East Ayrshire) 9 Greater Glasgow Community and Mental Health Services Trust Replacement of facilities for delivery of in patient mental health services (Stobhill) 8 Southern General Hospital NHS Trust Provision of geriatric medicine 9 Western Isles Health Board Community Hospital 8 Dumfries and Galloway Acute and Maternity Hospitals NHS Trust Provision of maternity and day care services 4 Yorkhill NHS Trust Provision of maternity services 10 Orkney Health Board Community Hospital 12 Highland Communities NHS Trust Provision of psychiatric unit (Inverness) 18 Dundee Healthcare NHS Trust Provision of psychiatric unit (Dundee) 9 Renfrewshire Healthcare NHS Trust Geriatric assessment facility 9 West Glasgow Hospitals University NHS Trust New major acute teaching hospital 100 Glasgow Royal Infirmary University NHS Trust Package of schemes 40 On Monday 16 June I announced that due to the urgent nature of proposals for maternity and theatre facilities at Glasgow Royal the Government would provide £36 million of public funding. Other aspects of the package of schemes will continue to explore PFI. I also decided that PFI was inappropriate for proposals for the redevelopment of the Western general hospital in Edinburgh and on Monday 23 June announced that £40 million would be provided for a new ward and theatre block.
Information on sums spent on preparatory work is not centrally available. However we estimate that costs should be not more than 1.5 per cent. of the capital value of a project. In view of the innovative nature of PFI boards and trusts have been provided with sonic funding to help cover these costs. As at 30 April 1997 grants to projects listed above amounted to approximately £4.7 million. We expect costs to decrease significantly as the PFI process becomes more streamlined. It should also be noted that much of the preparatory work for a project is necessary regardless of whether it will be funded publicly or under the PFI.