The Private Finance Initiative : sixth report, together with the proceedings of the Committee, minutes of evidence and appendices / Treasury Committee.

  • Great Britain. Parliament. House of Commons. Treasury Committee
Date:
1996
Catalogue details

Licence: Open Government Licence

Credit: The Private Finance Initiative : sixth report, together with the proceedings of the Committee, minutes of evidence and appendices / Treasury Committee. Source: Wellcome Collection.

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    Finance and Operate contracts extends that concept to include responsibility for post-construction main- tenance. 13. As explained in answer to Question 321, the Highways Agency within the Department of Transport has undertaken a thorough review of its contracting arrangements. Attached is a copy of the recent consultation document (17 January) seeking comment on 23 recommendations for implementing or trialling changes in contracting practice and methods.[Not printed] DONCASTER MBC 14. The Committee asked about this scheme (Question 358) and the Department undertook to make enquiries. The reference is understood to relate to proposals being jointly considered by Doncaster Metropolitan Borough Council, South Yorkshire Passenger Transport Executive and Railtrack for improving the Doncaster railway station site and access arrangements for buses, cars and pedestrians. Earlier proposals put forward by consultants are believed to have been rejected in favour of a more mod- est scheme. The intention appears to be to attract interest from developers. The Department has no direct involvement in progressing the scheme. It is for the interested parties to decide how to take matters forward. 15. The current scheme is costed at around £13 million. Government funding, if sought and agreed, would be through local transport package funding and subject to the established procedures for economic appraisal and value for money assessment. 7 February 1996 APPENDIX 21 Supplementary Memorandum submitted by the Department of Health REVENUE CONSEQUENCES OF PFI Revenue consequences of PFI schemes depend on a range of factors which vary with individual schemes and cannot be precisely quantified until Full Business Case approval stage. Forward estimates are therefore very broad aggregate figures. Revenue consequences over the next 3 years of NHS PFI projects in England are estimated as: 1996-97 £ 7 million 1997-98 £10 million 1998-99 £10 million Figures for the next 3 years reflect schemes already agreed. Schemes now being approved, such as the South Buckinghamshire NHS Trust redevelopment, will have revenue consequences starting in the year 1999-2000 and later. The rentals on PFI facilities are unlikely to be significantly more, in total, than NHS capital charges would have been on the publicly funded alternative. This is because, if they were significantly greater, the PFI option would be likely to fail the value for money test and so would not be approved. Further assessments will be made as contracts are agreed. COSTS OF PRIVATE FINANCE UNIT The NHS Executive Private Finance Unit (PFU) was set up following the launch of the PFI to take forward implementation of the initiative in the NHS. The PFU currently has 17 staff, including a number on secondment from the private sector. Estimated costs of the PFU for 1995-96 are around £600,000. Costs associated with scrutiny of Business Cases for major capital investments are incurred for public capital schemes and PFI projects alike. These functions are carried out by staff in regional offices and, for certain schemes, NHS Executive Headquarters. PFI ProjJEcT AT SOUTH BUCKINGHAMSHIRE NHS TRUST This PFI project will involve extensive rebuilding at the Amersham Hospital site and the creation of a new wing at Wycombe General Hospital. Only three of Amersham’s existing buildings will be retained: a 19th century listed building; the Mental Health Unit, opened in 1991; and the Dermatology Unit which opened in 1994. The project will include the construction of a new main entrance, outpatients department, a day hospital for the elderly, an x-ray unit and a creche.