§ Mr. EdwardsTo ask the Secretary of State for Wales (1) if he will make a statement on the decision of Gwent health authority to cancel the proposed Red Barn development; [2374]
(2) what role the private finance initiative has played in the Red Barn proposal at Nevill Hall hospital, Abergavenny. [2376]
§ Mr. Win GriffithsGwent Community Health Trust sought private sector interest under the Private Finance Initiative as required by the Department. A preferred bidder was selected and negotiations had been continuing.
Gwent Health Authority's decision was taken because costs had increased, value for money was not demonstrated sufficiently, and the proposals no longer met the demand for services. The Authority will now discuss needs with local people, local authorities and other interested parties. This is a matter for the Health Authority and they have to decide on the most cost effective way of delivering services for their communities.