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From The Socialist newspaper, 26 August 2009

Private Finance Initiative still threatens NHS future

There is a justifiable anger against the odious slurs cast on the NHS by the US health insurance companies and reactionaries of every stripe as they strive to undermine President Obama's health care plans.

Roy Farrar

While contrasting the benefits of our NHS with the US so-called health system - whereby US health insurance companies have acted for years as 'death committees' through the withholding of treatment to people on any specious grounds - we do not ignore New Labour's role in the relentless undercutting of the principles of the NHS!

Although PFI schemes have been reduced in number over the last two years, the mountain of debt already piled up by New Labour policies will continue to cast an ominous shadow over our NHS for years to come.

PFI profiteering

Of the 133 new hospitals built since New Labour came to power, 101 were financed under PFI. There are 149 PFI hospitals in Britain, valued at 12.27 billion. But a recent report by University of Edinburgh academics shows that the NHS will pay 70.5 billion for them.

Repaying the debt of PFI financing eats up well over 8 out of every 100 of one hospital's budget in London, as against a 5.8% debt rate for conventionally built hospitals. Half the larger PFI-financed hospitals are in financial difficulties compared with a quarter of non-PFI hospitals (Guardian).

Lloyds and RBS banks dominate the market in lending tens of billions of pounds to hospitals built under the PFI scheme. According to this new report the banks, bailed out by the state with taxpayers' money, "continue to charge excessive risk premiums to the taxpayer".

Professor Allyson Pollock of the University of Edinburgh's Centre for International Public Health Policy said: "Instead of using the opportunity of the taxpayer bailout (of Lloyds and Royal Bank of Scotland) to re-open the contracts and negotiate better rates in favour of the public sector, the UK government is allowing the banks to restore their balance sheet by charging relatively high rates of interest for PFI schemes.

"The increased costs of servicing the debt are met from NHS annual budgets, and result in reductions in the money available for services."


Pinderfields and Pontefract Hospital

No to any PFI wage cuts

Workers at Pinderfields and Pontefract hospitals in Yorkshire are voting in a consultative ballot for strike action. Around 400 members of Unite and Unison are affected. The two hospitals are being rebuilt in a PFI project and the hospital trust bosses have seen an opportunity to cut wages and conditions in the reorganisation.

The new pay bands initially affect maintenance and security staff but if they get away with cutting those workers' pay, they will obviously try to attack other workers.

The consultative ballot closes on 1 September.

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In The Socialist 26 August 2009:

Jobs and education not dole and debt


War and occupation

Afghanistan: Withdraw foreign troops


Socialist Party NHS campaign

No to health privatisation and 'the market'

Private Finance Initiative still threatens NHS future


Socialist Party campaign news

Vestas workers fight on

Ireland - workers campaign against Lisbon Treaty

Recession threat grows

Time to Fight Back: demonstrate at TUC conference


Socialist Party workplace news

Construction workers defending jobs and conditions

Postal strike reports

Fiddlers Ferry protest continues

South Yorks firefighters plan industrial action


Youth fight for jobs

No to Future Jobs Fraud scheme

Leaving education: comment

Youth Fight for Jobs action

Socialist Students and Youth Fight for Jobs campaign material


Socialist Party Marxist analysis

World recession, revolution and counter-revolution in Latin America


Socialist Party news and analysis

March shows growing opposition to far right BNP

Daventry: socialist candidate in council by-election

Passengers want publicly owned buses


Unison witchhunt

Unison witch-hunt/employment tribunal: The truth is coming out


Housing crisis

How safe are our houses?


Global Warming

Poorest suffer globally from climate change


 

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