HC Deb 18 May 1998 vol 312 cc269-70W
Mr. Wyatt

To ask the Secretary of State for Health if he will make a statement on the PFI for the new hospital on the Isle of Sheppey; and what contingency plans his Department has made in the event of failure of the PFI. [41919]

Mr. Milburn

We recognise the service need for improved hospital facilities at Sheppey. Thames Gateway National Health Service Trust, West Kent Health Authority and South Thames NHS Executive Regional Office are currently working hard to ensure a successful private finance initiative (PFI) scheme. Like all PFI schemes, to be approved the final agreed PFI solution must demonstrate it is affordable to the NHS and best value for money.

Should the decision be taken not to proceed with the PH option then all the parties above will work together to find an alternative solution.

Mr. Wyatt

To ask the Secretary of State for Health what factors led the North Kent Health Trust to purchase a new greenfield site for the intended Sheppey Community Hospital prior to determination of the PFI. [41921]

Mr. Milburn

In the outline business case for this scheme the trust examined the option of developing on their current site, but this was discounted as it would have involved using a cemetery (now disused) which is on the site. Local consultation indicated that there would be considerable opposition to building across the cemetery and this could delay any start on site by a significant period. Additionally, there would have been high costs involved with the removal of remains to an alternative site. These were the reasons for purchasing the new greenfield site.

A greenfield site was identified as the preferred option in the outline business case long before the trust started testing for the private finance initiative scheme.