Departmental Public Expenditure
Written parliamentary question to the Secretary of State for Health

Source:Hansard

Mr. Lansley: To ask the Secretary of State for Health (1) pursuant to the announcement of 3 February 2009 on safeguarding Government infrastructure investment, whether any of his Department's (a) under spends on previous projects and (b) unallocated funds will be used to provide funding for the private finance initiative projects referred to; [265558]
(2) with reference to the announcement of 3 February 2009 on safeguarding Government infrastructure investment, which of his Department's projects are included within the 110 projects referred to; and how much the Government plan to lend to each of those projects in each financial year. [265559]

Mr. Bradshaw: The Government announced on 3 March that they will lend to private finance initiative (PFI) schemes that cannot raise sufficient debt finance on acceptable terms. This lending facility will be run by the Treasury. All projects in procurement, meaning the 110 PFI schemes which have issued a notice to go out to tender in the Official Journal of the European Union (OJEU) but have not yet reached financial close, will be eligible for this finance from the Government. The £475 million North Bristol NHS trust Southmead hospital redevelopment is one of these schemes.

The North Bristol scheme is not at the stage where the private sector counterpart needs to raise finance. The Department will work with the trust and its advisers and the preferred bidder (when confirmed) and its advisors to monitor closely the general banking situation to see if it is necessary to approach the Treasury lending facility.

Funding for this lending facility will be provided from across Government, including initially from unallocated funds and Departmental under spends on previous projects. The Treasury Budget Report published in April this year will contain information on the year end position for the 2008-09 Department capital budget. The Department's capital plans for 2009-10 and 2010-11 are still being finalised

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