HOME   ARCHIVE   GALLERY   SHOP   ABOUT US      
 

 
AS JUNIOR DOCTORS STRIKE, MASSIVE PROFITS BEING MADE FROM SALFORD ROYAL HOSPITAL
 

Star date: 7th April 2016

A Salford Star Exclusive

SALFORD ROYAL HOSPITAL EQUITY OWNED OFFSHORE AS COMPANIES CASH IN ON NHS

As junior doctors continue their second day of industrial action, the Salford Star can reveal that PFI equity in Salford Royal Hospital was sold to an offshore company registered in Guernsey. According to the European Services Strategy Unit, Balfour Beatty, which sold 50% of its PFI equity to HICL Infrastructure in 2013, made a profit of £11.5million on the deal, and at the time was making almost 19% return on its investment.

Meanwhile, Salford Royal NHS Foundation Trust paid over £5million in PFI interest last year, as it forecasts a deficit of almost £15million by the end of this year.

Full details here...


Striking Junior Doctors outside Salford Royal Hospital Striking Junior Doctors outside Salford Royal Hospital Striking Junior Doctors outside Salford Royal Hospital
How PFI Works
click image to enlarge

Never mind Panama, it's the Guernsey offshore tax haven where equity in Salford Royal Hospital is parked.

In 2007 Salford Royal NHS Foundation Trust set out a business case for a massive re-vamp of the old Hope Hospital, including a new entrance, new blocks and new clinical departments. The capital cost of the work was £137million which would be financed through a PFI scheme (Private Finance Initiative)...

"The PFI scheme and associated facilities management (FM) services generate an annual unitary charge (UC) of £12.036m at 2007/08 prices" the business case stated "This and other PFI related costs are all affordable within the Trusts overall financial plans covering the period up to 2016/17... During this period the Trust will deliver surpluses, whilst dealing with other NHS cost pressures."

This was written in 2007. We are now in 2016/17, and the `unitary charges', according to the Government's official table, are estimated at £17million for this year, followed by £18million for next year, and rising every year after that to a high of £32million for the year 2041-42. By the time the PFI is over in 2042-43, the total payments for the PFI project are estimated at £705million from an initial £137million cost.

The £705million includes facilities management costs and the latest Trust accounts, for 2015, show the huge annual amounts being paid...£5.37million in interest alone. Stretched over the 34 years of the PFI this would mean that the Trust was paying £170million just in interest – more than the original £137million cost of the new blocks.

Meanwhile in 2015, the Trust also paid to the `service concession operator' a £3.126million `repayment of finance lease liability'; £4.707million for the `service element' (facilities management); a `capital lifestyle maintenance' charge of £242,000 and a `contingent rent' of £1.851million – giving a total of £15.296million.

Salford Royal NHS Foundation Trust is forecasting a deficit of £14.9million this year, and had a `Better Care at Lower Cost' drive to save £30million by the end of March. Meanwhile, the owners of the PFI equity in Salford Royal Hospital are cashing in...

Balfour Beatty had a 50% holding in the Consort Healthcare SPV (Special Purpose Vehicle) which owns the PFI. In July 2013 Balfour Beatty sold this to HICL Infrastructure Company Limited for £22million, generating a profit of £11.5million... "The proceeds from the transaction...exceed the Directors' valuation by £8.3million" slavered a Balfour Beatty press release at the time (see here).

HICL Infrastructure Company Limited is registered in the offshore tax haven of Guernsey. At the time of the sale, Balfour Beatty was getting an annual rate of return of 18.8%, according to the European Services Strategy Unit, which is studying and producing reports on all the country's PFI projects.

"PFI rewires the relationship between the citizen and the state, so that our public services are no longer owned by, or directly accountable to us" states the Strategy Unit "Because private finance is used not Government borrowing, PFI is significantly more expensive than Government funded projects.
 
"Your local hospital looks like a normal NHS hospital, except it was financed by a consortia of banks and construction firms" it explains "It might be owned by HSBC via an offshore tax haven, subject to contracts which are so `commercially sensitive' they are not available in the public realm. PFI contracts require Freedom of Information requests just to find out how your local service should operate, where money is really going, and who is responsible for contract maintenance.
 
"Yet despite frequently calling for an end to `Labours flawed PFI program' whilst in opposition, in 2011 Chancellor George Osborne rebranded and continued the PFI gravy train under the `PFI 2' banner" it adds "With the number of NHS Trusts in financial trouble having doubled in the last financial year, it is up to us to call an end to the madness of PFI."

Meanwhile, the community campaign People vs Barts PFI is calling for the nationalisation of Special Purpose Vehicles to "end profiteering from public assets", and is urging trade union branches, community and other relevant organisations to pass motions in support of its aims.

Its full proposal The People v PFI has a full explanation of what SPVs and PFI are and how they work, together with its alternative nationalisation ideas. The 15 page report can be read here...

As the striking junior doctors wind down their fourth walkout this evening, fighting exploitation and for the future of the NHS, in the background, in some grubby tax haven, financial speculators are making £millions out of the NHS.


• The Salford Royal Hospital PFI is one of seven current PFIs operating in Salford, almost all of which have equity owned by offshore companies based in Guernsey and Jersey – further details to follow.

* To read more about the European Services Strategy Unit and its reports – click here

* Also see previous Salford Star article: Striking Junior Doctors say NHS is facing a doctor shortage - click here


Main photo shows junior doctors on the picket line at Salford Royal Hospital this morning. Photo by Steven Speed



Please enter your comment below:
 
 
 
Salford Star CD
Salford Star contact
Deli Lama
advertisement
 
Contact us
phone: 07957 982960
Facebook       Twitter
 
 
Recent comments
article: THREE EARTH TREMORS RECORDED NEAR FYLDE FRACKING SITE
Please google "well integrity". Professor Anthony Ingraffea. The well casing is concrete and the pipe has joins. Where there's a j... [more]
article: THREE EARTH TREMORS RECORDED NEAR FYLDE FRACKING SITE
We told the government No Fracking and they've carried on regardless, riding roughshod over the public's wishes, probably for thei... [more]
article: PETERLOO THE MOVIE OPENS AS SALFORD DIRECTOR MIKE LEIGH POINTS OUT ITS RELEVANCE TO THE NOW
Ray, Just be quiet, okay. The time for you pretending to be a friend of the working man is over. You're just a servile Little Yezh... [more]
article: THREE EARTH TREMORS RECORDED NEAR FYLDE FRACKING SITE
The fracking/anti-fracking debate is not the point of this comment. Without trying to diminish the geological significance of th... [more]
article: OPPOSITION TO FASCIST EDL IN MANCHESTER CALLED FOR BY POLITICIANS AND TRADE UNIONS
It is not for an MP to decide who is welcome in our city or not. I don't mind anyone holding protests or marches in Manchester ... [more]
 
 
 
 
 
Days
Hours
Minutes
Seconds
 
 
 

Donate

Help the Salford Star...

all donations welcome

 
 

More articles...

PARENTS PAMPER AND PLAY COMES TO SALFORD

Star date: 20th October 2018

DE-STRESSING WITH BABIES

Women In Bloom Superhero Day
Saturday 27th October 9:30am-3:30pm
Angel Centre £10 adult/£18 family

A pamper and play day is coming to the Angel Centre next Saturday, as Visit From The Stork CIC holds a Women In Bloom Superhero Day to encourage parents to find ways of taking time out for themselves and improving their mental health and wellbeing. It will feature massages, 'relax time' classes and loads of stalls.

Full details here...

THREE EARTH TREMORS RECORDED NEAR FYLDE FRACKING SITE

Star date: 19th October 2018

BRITISH GEOLOGICAL SURVEY RECORDS TREMORS THAT MIGHT TRIGGER EARTHQUAKES

Three earth tremors have been recorded by the British Geological Survey near where Cuadrilla has begun fracking in Fylde..."The problem for Cuadrilla is that if it carries on regardless, bigger earthquakes may well be triggered" says David Smythe, Emeritus Professor of Geophysics at the University of Glasgow.

Full details here...

OPPOSITION TO FASCIST EDL IN MANCHESTER CALLED FOR BY POLITICIANS AND TRADE UNIONS

Star date: 19th October 2018

CALL TO OPPOSE EDL MEETING IN MANCHESTER

EDL Protest
Saturday 20th October 12:30pm
Piccadilly Gardens, Manchester

Having abandoned plans to march in Didsbury this weekend, the fascist EDL is instead holding a rally in Manchester tomorrow, and Stand Up To Racism and Unite Against Fascism have called for a counter demonstration, backed by politicians and trade unions... "The EDL are never welcome in our city" says Kate Green MP "We stand together against division and hate."

Full details here...

PETERLOO THE MOVIE OPENS AS SALFORD DIRECTOR MIKE LEIGH POINTS OUT ITS RELEVANCE TO THE NOW

Star date: 18th October 2018

THIS IS OUR HISTORY...

Peterloo, the movie, starring Maxine Peake, was premiered in Manchester last night at Home. The Salford Star was not invited but we did manage a non-exclusive twenty second interview with Salford director Mike Leigh on the red carpet, and a viewing at the peasants' overflow on Deansgate. Is it any good? Read our review and that crucial interview with Mike Leigh.

Full review here...

SWINTON PROTESTS BRING SALFORD COUNCIL AND BELLWAY HOMES TO NEGOTIATING TABLE

Star date: 17th October 2018

NEVER MIND THE BREXITS HERE'S SAVING OUR NEIGHBOURHOOD!

As Theresa May was locked in Brexit talks in Brussels, this morning Salford City Council, Bellway Homes and Swinton residents' Saving Our Neighbourhood group were meeting to try and resolve horrendous problems around the Campbell Road natural green space, where the developer is attempting to build 241 houses.

The Council and Bellway have been brought to the table after constant protests by residents..."I think that's the only way we're going to get anywhere" said Barry Woodling of Saving Our Neighbourhood as residents demonstrated yet again outside the Civic Centre.

Full details here...

 



written and produced by Salfordians for Salfordians
with attitude and love xxx