Campaigners urge bosses not to use PFI to build new Royal Liverpool Hospital

Helen Hunt in The Liverpool Echo 14th May reports: Sam Semoff concerned Private Finance Initiative (PFI)”takes money out of the health service budget”

“Campaigners are urging NHS managers to ditch plans to fund part of the new Royal Liverpool Hospital using private finance.


Sam Semoff and other members of Keep Our NHS Public will lobby the trust at an public meeting planned today about the new build.

Retired researcher Mr Semoff says there are alternatives to borrowing through the Private Finance Initiative (PFI), such as the government giving more cash to fund the rebuild.

He said: “The thing that concerns me about PFI is that it takes money out of the health service budget. And paying off that PFI debt takes precedence when it comes to the trust’s finances.”

The total cost of the hospital project, including new build, landscaping, demolition and other associated costs is £429m, with £211m of that being met through private finance.

Aidan Kehoe, chief executive, said: “There is widespread support for the new Royal and the scheme is widely acknowledged as being a sound investment into the future of Liverpool.

“We’ve worked extremely hard to get the very best deal possible. Around three-quarters of the scheme’s funding will come from public sources and our annual payment to our private sector partner is less than 6% of our income.”

Mayor Joe Anderson said the Royal’s PFI build had been scrutinised “line by line” and approved.

He said the time for debate on funding was over, saying: “The time for the debate over the method of funding has passed. We now need to concentrate our efforts on making sure it is delivered.”

The Private FInance Initiative (PFI) is one of the scandalous methods of rationing which gets now, and pays later and for ever. The whole idea of government capital projects under PFI has been shown to be the worst short-term, and harmful, with many examples around the country such as in Devon and Norwich.

Allyson Pollock in the Guardian 18th Dec 2012 describes the perverse effects of LIBOR or PFIs.

Outsource Politicians

This entry was posted in A Personal View, Rationing, Stories in the Media on by .

About Roger Burns - retired GP

I am a retired GP and medical educator. I have supported patient participation throughout my career, and my practice, St Thomas; Surgery, has had a longstanding and active Patient Participation Group (PPG). I support the idea of Community Health Councils, although I feel they should be funded at arms length from government. I have taught GP trainees for 30 years, and been a Programme Director for GP training in Pembrokeshire 20 years. I served on the Pembrokeshire LHG and LHB for a total of 10 years. I completed an MBA in 1996, and I along with most others, never had an exit interview from any job in the NHS! I completed an MBA in 1996, and was a runner up for the Adam Smith prize for economy and efficiency in government in that year. This was owing to a suggestion (St Thomas' Mutual) that practices had incentives for saving by being allowed to buy rationed out services in the following year.

1 thought on “Campaigners urge bosses not to use PFI to build new Royal Liverpool Hospital

  1. Pingback: GP leaders launch major policy drive over premises ‘live crisis’ | NHS reality. An NHS soapbox. Speakers' corner for the NHS.

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