Lib Dems reveal hidden cost of PFI Hospital
February 9, 2010 12:00 AM
Figures released today by the Liberal Democrats reveal that University Hospital of North Durham will cost the taxpayer more than half a billion pounds, despite being worth just over £60 million.
Under the Government's Private Finance Initiative scheme new buildings such as schools and hospitals are financed by the private sector upfront. Public funds then pay back the private firm at hugely inflated cost.
The figures unearthed by the Lib Dems show the true value of the University Hospital as £61 million. However, over the course of the 30 years repayment scheme the cost to the taxpayer will be £521 million.
Commenting, Liberal Democrat Parliamentary candidate Carol Woods, said:
"These figures reveal the true cost of Labour's stewardship of the NHS.
"We're entering into one of the most difficult financial periods in the NHS's history and this Government's legacy will be a mountain of debt.
"Labour are quick to lecture people about the damaging culture of personal debt but they have fallen into the same trap on a huge scale. They have mortgaged our vital public services to the hilt.
"The scandal of PFI could well be the lasting legacy of this Government's rush to grab the headlines ahead of making sensible long-term plans. A project that could have cost £61 million will now cost more than half a billion pounds. The repayments are going to put huge pressure on vital services.
"We need a new approach to public services in this country. The Liberal Democrats will change the way the NHS works so that money goes further and patients come first."
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