John Malcolm, Teesside Socialist Party
Roseberry Park Hospital in Middlesbrough is a 365-bed mental health site built using a private finance initiative eight years ago at a cost of £75 million. By the end of the contract Tees, Esk and Wear Valleys Health Trust will have paid out £328 million plus maintenance costs.
The construction company Laing O’Rourke cut corners and the building has major defects, including leaking roofs, problems with the water supply and faults with the security and fire alarm and safety system. Carillion, which had the maintenance contract, was unable to rectify the faults and it will now cost £50 million to put right. Every ward will have to be closed one by one and patients transferred to a new unit currently being built in the grounds.
The trust applied to the high court to cancel the contract. This is the first time this has happened and the high court recently ruled in favour of the trust, including awarding court costs.
Carillion employed about 25 workers. Since the collapse of Carillion these workers have faced insecurity over their future. The trust has set up an arm’s length company, which Carillion staff were transferred into this June.
Bosses are now considering a number of options which could see the transfer of hundreds of ancillary staff out of the NHS into the new company. This is effectively another form of privatisation as their pensions, terms and conditions would be at risk and new employees would be employed on different terms and conditions, leading to a two-tier workforce.
Nationally, a number of trusts have already set up similar arms-length companies and strikes have taken place against them in Wigan and in Mid Yorkshire.
All unions representing staff at Tees, Esk and Wear Valleys are opposed to the new wholly-owned subsidiary and the Unison branch covering the trust is launching a campaign.