PFI - The robbery continues
WORKERS, JUNE 2006 ISSUE
Private Finance Initiative schemes continue to demonstrate greed and outright daylight robbery by the companies involved. The House of Commons Public Accounts Committee, reviewing the operation of the PFI consortium managing the Norfolk and Norwich NHS Hospital Trust, choicely referred to how "investors" increased their rate of return from 16% to 60%.
That windfall generated over £115 million for the consortium with only £34 million going back to the hospital. It has since been revealed that the Department of Health told the trust to agree to the deal. To get out of the contract would cost the trust over £257 million – almost a third of the entire NHS deficit.
The PFI scheme will cost the hospital between £5 and £7 million a year, offset by government funding of £3.8 million a year, for the next 30 years. That means over £210 million going to the "investors". To break even from this year's estimated £14.8 million deficit, the trust is looking to shed over 450 jobs.