THE TRUTH is out. Far from and reducing public spending, the government's controver. sial Private Finance Initiative (PFI) is substantially more expensive.
The scheme involves offering private firms the right to tender A LABOUR government is now seen by some busifor any public sector development scheme costing more than flm, shouldering the initial capital cost in exchange for owning key facilities which could be 'leased back' to the public sector at a fat profit. Until now it has largely been attacked as a bureau. cratic minefield that has delayed dozens, perhaps hundreds of schemes in the NHS. But the latest revelacons contirm that PFl amounts to little more than the discredited "creative tia keen to bleed profits from a cash-starved NHS.
The bitter truth that PFI costs more money (estimates suggest an extra 5-8 per cent above publie sector funding) has finally been admitted by a project direc. tor of one of the two much-delayed flagship schemes to be financed under the PFI, the new Swindon and Marlborough hospital.
According to Trust boss David Roberts, PFi projects for the NHS will carry "a higher long. term revenue cost". If the new hospital were built to its original specifications its services would cost health authorities more than expected - and possibly more than they can afford.
The new Swindon hospital has already been slashed from 520 to 480 beds, and latest figures suggest there will be a massive funding shortfall during the period of the PFI contract. There are now even doubts over the suitability of the site selected for the new hospital. More delays are almost certain.