Stourbridge News
MP highlights Dudley hospital's huge PFI bill
6:13pm Wednesday 22nd February 2012
DUDLEY South MP Chris Kelly highlighted the plight of the borough’s main hospital in the Commons this week, telling the Health Secretary it will be paying off £1.8 billion of PFI debt for nearly 30 years.
Mr Kelly revealed the staggering sum the hospital has been left to pay off since its 2003 expansion funded through the then Labour Government’s Private Finance Initiative.
He raised the issue on Tuesday (February 21) while quizzing Health Secretary Andrew Lansley on what steps he was taking to help NHS hospitals that are being weighed down by PFI debt.
The Conservative MP said the Dudley Group NHS Foundation Trust would be paying off the costs of the Russells Hall revamp until 2042.
He said: “It is my belief that PFI was too often used by the last Government as a means of keeping huge costs off the nation's balance sheet.”
Mr Kelly, a member of the PFI Rebate campaign group, added: “Ultimately these are costs for UK taxpayers, including hardworking families in Dudley and the Black Country.”
Mr Lansley branded the PFI debts affecting 102 UK hospitals as “enormous mortgages” worth around £67 billion.
He added: “Russells Hall, like others, is having its contract reviewed for potential savings following a Treasury-led pilot exercise undertaken at Queen’s Hospital, Romford.”
Paula Clarke, chief executive of the Dudley Group NHS Foundation Trust, said the PFI contract with Summit Healthcare means the Trust has to pay back a whopping £30million each year.
But she added: “This is adjusted each year for inflation in line with the retail price index.
“However, NHS funding inflation is based on the consumer price index, which is lower. This presents a significant financial challenge for the Trust.”
She added: “We are pleased that Chris Kelly has raised this important issue.”