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Health-related PFI contracts are going ahead says Prime Minister

29 January 2009

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The impact of the credit crunch on health-related private finance initiative (PFI) projects is to be reviewed by the government.

There are concerns that because they rely on funding from banks, some may be under threat or need underwriting by the Treasury.

Labour’s Ian Gibson had raised fears about a contract at the Norfolk and Norwich Hospital, and asked whether it “might not be a good deal to buy that out at this stage”.

Prime Minister Gordon Brown replied: “The Treasury is looking at the PFI issues that arise from the loss of lending capacity in the economy, but I’m assured by the health secretary the project you are talking about is one that is going ahead.”

Labour’s Charlotte Atkins raised concerns about the Biddulph health centre, which “will give a much-needed boost to the construction industry and ensure that my constituents have a really important health centre.”

Mr Brown said the centre was a “£10m project”. He added: “We are not cutting investment in them, they are moving ahead and all health service investment we want to see happen has been budgeted for and will go forward.”

Copyright © Press Association 2009

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