07 September 2001
Using government figures, the Liberal Democrat MP David Laws found that in some cases the savings are almost non-existent.
For example, the Worcester Hospital, a £1.1bn PFI project, achieved a discount of 0.2%. Similarly, the £1.8bn Dudley Group of Hospitals, resulted in savings of 0.3%. The £565m neuro-cardiac unit for London's St George's Hospital NHS Trust saved 0.4%.
'Ministers appear reluctant to release their PFI costings. The figures from the Department of Health may give us a clue as to why,' said Laws.
The MP for Yeovil calculated his figures from answers given in Parliamentary questions by health ministers. Twenty-three projects were evaluated.
His research also found that some PFI projects bucked the average and produced significant savings. The South Tees Acute Hospitals project, a £210m scheme, resulted in savings of 7%. The £161m PFI South Buckinghamshire hospital project realised 4.47% savings.
The survey is one of the first attempts to assess the controversial public sector comparator, the process whereby projects are assessed whether they would be more cheaply built in the public or the private sector.
Laws said the Treasury Select Committee should examine the value for money of PFI projects when Parliament returns next month.
PFsep2001
