PFI/PPP Contracts
Dr. Cable: To ask the Secretary of State for Defence how many private finance initiative and public private
27 Nov 2006 : Column 363W
partnership contracts with his Department and its agencies have been won by Halliburton or its subsidiaries in each year since 1997; what the terms were of each contract; and if he will make a statement. [101227]
Mr. Ingram: I refer the hon. Member to my answer of 4 April 2005, Official Report, column 1114W. Since then the Ministry of Defence has let a third private finance initiative (PFI) contract and no public private partnership contracts with subsidiaries of Halliburton.
In April 2006 a contract for project Allenby/Connaught was signed with Aspire Defence a consortium comprising the UK element of the Halliburton subsidiary KBR and Carillion. The contract is for the redevelopment of army facilities at Aldershot, Tidworth, Bulford, Warminster, Larkhill and Perham Down. It involves the rebuild, refurbishment, management and operation of facilities in the largest accommodation PFI project the Ministry of Defence has ever undertaken. Service delivery under the contract commenced on 10 July 2006. The 35-year PFI contract is worth, in whole life cost terms, approximately £8 billion (excluding VAT).
Private Finance Initiative
Mr. Hoban: To ask the Chancellor of the Exchequer (1) if he will list private finance initiative projects which have been refinanced in each year since 1997; and what the value of each project was; [46033]
(2) how many private finance initiative projects were subject to refinancing in 2005; what the refinancing gain was in each case; and how much of this gain the relevant government body received through (a) a lump sum and (b) a reduction in the unitary charge. [46035]
John Healey: The table shows all recorded refinancings of PFI projects since 1997 and the value of each project.
There were five PFI projects, subject to refinancing in 2005. The following list shows the date the refinancing closed, the amount of the gain and the authority's share:
London borough of Tower Hamlets Groups Schools, 8 March 2005, no refinancing gain, no authority share.
Laganside Courts, 15 July 2005, refinancing gain £2.41 million, authority share £0.722 million.
Nottingham Tram, 10 November 2005, the outcome of the Authority's negotiations on gain share is yet to be confirmed.
Tyne and Wear Fire Services, November/December 2005, no refinancing gain, no authority share.
Greater Manchester Police Authority, 22 December 2005, total refinancing gain £1.02 million, total authority share £0.607 million.
Additionally, the BBC White City project was not concluded under a PFI structural framework, but shares many similar characteristics.
BBC White City, 23 March 2005, total refinancing gain £90 million. Total authority gains £62.00 million.
The list shows the refinancing gain in each case and produces a total refinancing gain of £93.42 million of which £63.329 million was for the public sector.
Information regarding how much gain the relevant government body received through a lump sum, or reduction in unitary charge, is not collated centrally.
Refinancings completed as of 25 January 2006
| Project name | Sponsor department | Date refinanced | Value (£ million) | Comments |
| Refinancings taking place before the Code | | | | |
| Colfox School | DFES | 1 June 1999 | 15.60 | |
| Royal Armouries Museum—Refinancing | DCMS | 1 July 1999 | 42.00 | |
| Altcourse (Fazackerley) Prison | HO Prison Service | 1 November 1999 | 88.00 | |
| Ashfield (Pucklechurch) Prison | HO Prison Service | 1 January 2000 | 30.70 | |
| Dovegate (Marchington) Prison | HO Prison Service | 1 January 2000 | 64.00 | |
| Hassockfield (Meadomsley) STC | HO | 1 January 2000 | 10.00 | |
| Kilmarnock Prison | Scot Exec | 1 January 2000 | 32.00 | |
| Lowdham Grange Prison | HO Prison Service | 1 January 2000 | 32.00 | |
| Sussex Weald and Downs NHST—Graylingwell Hosp. Reprovision Chichester | DoH | 1 February 2001 | 27.00 | |
| A19 Dishforth to Tyne Tunnel DBFO | DfT (Highways) | 1 March 2001 | 29.00 | |
| "Heart of the City" Offices | ODPM | 1 April 2001 | 20.00 | |
| Parc Bridgend) Prison | HO Prison Service | 1 May 2001 | 74.00 | |
| Balfron School | Scot Exec | 1 June 2001 | 16.50 | |
| Dundee Ninewells Psychiatric Services | Scot Exec | 1 June 2001 | 10.00 | |
| Mearns Primary and St. Ninian's High School | Scot Exec | 1 June 2001 | 12.50 | |
| Newcastle Estate Development | IR | 1 June 2001 | 163.80 | |
| HM Customs and Excise—IT Infrastructure PFI | C&E | 1 July 2001 | 20.00 | |
| M1—A1 Link Road (Lofthouse to Bramham) | DfT (Highways) | 1 September 2001 | 214.00 | |
| M40 Junctions 1 to 15 | DfT (Highways) | 1 October 2001 | 130.00 | |
| Antarctic Survey Ship | DTI | 31 December 2001 | 22.00 | |
| North Wiltshire DC—Property Rationalisation | ODPM | 1 January 2002 | 7.00 | |
| Brooklands Avenue, Cambridge | Defra | 1 February 2002 | 21.00 | |
| Calderdale Hospital | DoH | 1 May 2002 | 65.60 | |
| Joint Services Command and Staff College | MoD | 1 June 2002 | 93.00 | |
| Manchester Inland Revenue Accommodation Project | IR | 1 July 2002 | 32.00 | |
| | | | | |
| Refinancings taking place under the Code (ie 30/70 per cent. split authority/private sector) | | | | |
| A69 Carlisle to Newcastle DBFO | DfT (Highways) | 1 May 2004 | 9.00 | |
| A30/A35 Exeter to Bere Regis DBFO | DfT (Highways) | 7 November 2002 | 75.00 | |
| A50/A564 Stoke-Derby Link DBFO | DfT (Highways) | 7 November 2002 | 21.00 | |
| Bute Avenue | Wales | 12 February 2003 | 45.00 | |
| Debden Park School | DFES | 31 March 2003 | 17.70 | |
| Hillingdon—Barnhill School | DFES | 1 May 2003 | 18.80 | |
| Cardinal Heenan (VA) School | DFES | 20 May 2003 | 7.70 | |
| Central Scotland Family Quarters—Bannockburn | MoD | 10 June 2003 | 25.00 | |
| Haringey Schools | DFES | 11 September 2003 | 62.50 | |
| Bridlington Schools | DFES | 10 September 2003 | 26.00 | |
| Brent Jews Free School | DFES | 22 September 2003 | 9.00 | |
| Bromley NHST—New Hosp | DoH | 28 April 2004 | 156.00 | |
| Hairmyres Hospital | Scot Exec | 24 August 2004 | 92.00 | |
| Medium Support Helicopter | MOD | 30 December 2004 | 114.00 | |
| Sheffield Schools | DFES | 15 December 2004 | 58.80 | |
| Dartford and Gravesham Hospital NHS Trust | DoH | 25 March 2003 | 122.00 | |
| Norwich and Norfolk Health Care NHS Trust | DoH | 18 December 2003 | 335.00 | |
| LB Tower Hamlets Group Schools | DFES | 8 March 2005 | 88.50 | 2005 refinancing |
| Laganside Courts | First Secretary of State acting on behalf of the Northern Ireland Court Service | 15 July 2005 | 28.20 | 2005 refinancing. |
| Nottingham tram | DfT | 10 November 2005 | 172.00 | 2005 refinancing; details to be finalised. |
| | | | | |
| SOPC gain-sharing (ie post-Code, 50/50 gain share) | | | | |
| East Lothian Council—Schools and Community Facilities PPP | SE | 11 March 2004 | 45.00 | |
| Tyne and Wear Fire Services | ODPM | November/December 2005 | 30.00 | 2005 refinancing. |
| Tube Lines Ltd.—London Underground | TfL | 11 May 2004 | 2,079.00 | |
| Greater Manchester Police Authority | HO | 22 December 2005 | 76.90 | 2005 refinancing, numbers estimates at present to be finalised shortly |
| Total | | | 4,986 | |
| Total for 2005 | | | 396 | |
| | | | | |
| Other projects | | | | |
| Second Severn Crossing | DfT (Highways) | 31 December 2002 | 331.00 | |
| BBC White City | DCMS | 23 March 2005 | 365.00 | 2005 refinancing |
| Grand total | | | 5,682 | |
Notes:
1. This is a list of UK-wide local and central government completed refinancings notified to PUK
2. The code referred to is a voluntary code of conduct on the sharing of refinancing gains on PFI projects, introduced in 2002.
26 Jan 2006 : Column 2263W
The National Health Service, PPP and PFI
I am writing this to open the public’s eyes at the way EU law forces Member States to reorganise their welfare services. Welfare is perhaps the last bastion of nationalism, but it is one nationalism that the vast majority of people will most definitely want to keep, it poses however, a problem for the European Union, for how can the Union, that is dedicated to the removal of national borders allow our welfare state to remain as it is when other member state’s welfare systems are not all free at the point of delivery? Are WE the odd one out, yet again?
Although people are concerned at how many hospitals are closing and nurses and doctors are being made redundant, some have no idea WHY this is happening, and even less understand perhaps why I am putting the first point of blame on to our involvement in the European Union and my second point of blame to the present Labour Government.
The NHS covers four separate (once) publicly funded systems, General Practitioners, Accident and Emergency, long term health care and Dentistry.
There has always been Private Health care for those that could pay for it or prefer the privacy provided by private care, but it is limited in certain cases. It is usually paid for through private insurance. NHS services on the other hand are “free at the point of delivery” paid for by our taxes and I understand the budget for 2006-7 is £96 billion. It employs over 1 million people and is reputed to be the largest employer in Europe if not the world, depending on who is the teller! We, the people, by way of our taxes, employ them all.
Things seemed to roll along fine until 1997, but the urge to join the euro by Prime Minister Blair started the changes I am writing about here. My attention was drawn to The Times (In 2003), which reported that if (and we may not have that option of “if” one day) we join the Euro, the European Central Bank had warned Britain it might have to give up its National Health Service. Even the Bolton Evening News, May 2003 reported that, “Britain would be forced to scrap the NHS if we joined the euro, so warns the ECB, saying free health care could be slashed to just emergency services”. Also, “The ECB recommends jettisoning the NHS in favour of private health care, saying Britain’s aging population will send NHS costs soaring, and euro-zone rules would not allow Gordon Brown to borrow necessary funds to foot the bill”. Does Britain have an aging population more so than any other country?
An informative booklet on the “Services Directive” (A race to the Bottom) by Brian Denny, explains how EU rules attack public services, jobs, pay, pensions and collective bargaining rights”. Plain speaking indeed. “Following the exclusion of healthcare from the Services Directive, the EU Commission immediately announced plans for a new separate directive by the end of 2006 to open up health services to free market competition. Not surprisingly, the ECJ ruling have helped this process along by using internal market arguments first mooted in the Services directive.” If the EU does not get their way in one matter, they will get their way in another.
As already pointed out above, the ECB report from May 2003 called on Euro zone members to reform health services and although we are not in the Euro, we still have to abide by the Stability and Growth Pact (SGP). One way round the removal of the ability to “borrow” more money was to introduce Public Private Partnership (PPP) or, Private Financing Initiative (PFI) into the Health Sector and turning hospitals into Trusts. According to Brian Denny, these moves have already led to a cash crisis in the NHS and the loss of over 7000 jobs.
Is this what all this is about? To come into line with the ECB? So that we can abandon sovereignty over our sterling currency and reserves or the authority to control our interest rates? Only the rich will be able to have peace of mind if they fall ill for they will be the only ones that will be able to afford to pay. The elderly, old and poor will no longer be cared for.
PFI/PPP, have been used in many areas, the London underground is one major venture. Recorded in Hansard for the 24th July 2006, Col 1387W A question was asked about PFI Contracts. The answer given was, “There are currently over 500 projects that have been signed and are now in operation. Around a further 200 projects have reached financial close, but are yet to become operational. The combined capitol value of all signed projects is over £48 billion. Information on PFI projects that have reached financial close may be found from the ‘PFI Signed Projects List’ on the Treasury’s public website”. “At the time of the Budget around 80 projects were at the preferred bidder stage and around 155 had yet to appoint a preferred bidder. The estimated capitol value of these projects is around £26 billion”. End of Quote.
I am looking at PFI as, ‘on the never, never’. If I ran up hire purchase debts into the hundred thousands, it would not just take me thirty years to pay off, but it seems as if I might expect my children and grandchildren to continue paying off my debts long after I have left this earth. From all the businesses that I have found, this Country will ‘be in hock’ if not bankrupt, and what for eh? So that we can either eventually join the euro, and/or stay in the European Union and be governed by it forever? How can one Government, a Labour Government at that, that is supposed to be all for the people, run up so much debt and what on earth for? Labour has taken something very special from which each and every one of us at some time in our lives, have been glad the NHS is there for us, yet is prepared to see it trashed just to remain in what is, without doubt, about turning into a federal, political state and a totalitarian state at that. Many MPs we now know, (and can prove) knew that from before we joined the European Community.
This disastrous PPP/PFI adventure has almost gone off the scale under New Labour. To me, we are beginning to see ‘rationing’, we are being kept fit, we have to lose weight (might we not be treated if we are overweight?) We have to stay healthier so we are discouraged every which way from smoking. (Will we be refused treatment if we DO still smoke?) Our children may not be allowed the “Gob-stoppers” we once used to stuff our mouths with because the “We are watching what you eat” patrol are on the lookout, what the children eat at meal times. (Animal farm was but a comic compared to today’s lot)
In the, “Health Unions Briefing for MPs”. July 2006, it becomes obvious the Unions are concerned, for they “recognise that across England (Scotland etc are devolved) NHS organisations are being forced to make cuts which affect patient services. Trusts have been told by the Government that they have to pay off their debts by the end of the year and are having to cut jobs and services in order to meet this target”. “Nearly one third of all trusts are in debt. There have been a growing number of compulsory redundancies in trusts across England. Although these have, largely, been dealt with through freezing posts and natural waste there are a whole range of measures taking place such as closure of departments and severe cuts in education and training, which will have a huge impact on standards of care and services to patients, both in the short and long term.”
The closing of wards, beds and hospitals could be prevented if we came out of the European Union now. We could build and pay up front for the hospitals we need if we did not have to obey EU laws or pay our alleged “Share” of the EU budget that is wasted, wasted, wasted. We could do what we liked with our own money; we most certainly would not have to be held back by the Stability and Growth Pact. We would become a sovereign State once again and our own politicians would have to do the job we pay them for from the day they are elected. The Union is still attempting to become the all-powerful state it wants to be, (It is stealthily and undemocratically working toward that end now) it must become one without the United Kingdom of Great Britain for we will indeed be “Better off out”.
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