I’ve just seen this regarding our local hospital, Queens at Romford. I don’t know if it’s true but feck me, what a bad deal we got!
"Construction began in June 2003. It was completed in October 2006 and went operational the following month.
The capital cost of the building was £266m.
The PFI deal is for 34 yearsThe PFI contract bundles the payment to the private sector as a single ('unitary') charge for both the initial capital spend and the ongoing maintenance and operation costs.
The first payment was made in 2006/07 for £13m. This was only for part of the year, the following year the payment was £42m. The sum each year has gone up with the payment in 2019/20 totaling £63.8m. To date £688.2m has been paid.
Payments continue to rise with £98.6m due in 2038/39 and then a final payment of £80m in 2039/40.
The total sum paid to build a £266m hospital and the unitary charge over 34 years will total £2,281.5m. Yes just under £2.3 Billion.
So when i hear people try and say it's the Tories you have to laugh. This hospital was conceived, built, financed and opened all under Labour. Payments have been made for 15 years so we're not even half way through.
Payments on current contracts in force run until 2059/60.
What i don't have is what would have been the cost in the government has financed the built themselves and operated and maintain the hospital themselves.
One thing that has come to mind. By keeping these figures off the books, it enable Labour to say they were putting in more money in the NHS than was strictly true as it did not take into account these payments and the staggering future liabilities. If you take out a mortgage you pay the same amount in principle each month adjusted to the interest rate. But here we see a payment of £42m at the start is now 50% more and will almost hit £100m in the final years. That is complete madness."
"Construction began in June 2003. It was completed in October 2006 and went operational the following month.
The capital cost of the building was £266m.
The PFI deal is for 34 yearsThe PFI contract bundles the payment to the private sector as a single ('unitary') charge for both the initial capital spend and the ongoing maintenance and operation costs.
The first payment was made in 2006/07 for £13m. This was only for part of the year, the following year the payment was £42m. The sum each year has gone up with the payment in 2019/20 totaling £63.8m. To date £688.2m has been paid.
Payments continue to rise with £98.6m due in 2038/39 and then a final payment of £80m in 2039/40.
The total sum paid to build a £266m hospital and the unitary charge over 34 years will total £2,281.5m. Yes just under £2.3 Billion.
So when i hear people try and say it's the Tories you have to laugh. This hospital was conceived, built, financed and opened all under Labour. Payments have been made for 15 years so we're not even half way through.
Payments on current contracts in force run until 2059/60.
What i don't have is what would have been the cost in the government has financed the built themselves and operated and maintain the hospital themselves.
One thing that has come to mind. By keeping these figures off the books, it enable Labour to say they were putting in more money in the NHS than was strictly true as it did not take into account these payments and the staggering future liabilities. If you take out a mortgage you pay the same amount in principle each month adjusted to the interest rate. But here we see a payment of £42m at the start is now 50% more and will almost hit £100m in the final years. That is complete madness."
