Select Committee on Health Memoranda

Table 5.4.4(i)

  2.  Last year an addendum was submitted to the Committee which reported on new arrangements which had been introduced to meet certain costs arising from PFI schemes and which could be classed as revenue costs. The first resulted from meeting the 6 per cent cost of capital on land and buildings transferred to the private sector on a number of early PFI schemes which arose following the introduction of new guidance in 1999. To meet the cost of capital on these we reported last year that a revenue support scheme had been set up which would distribute £9.3 million between 27 eligible Trusts for 2000-01. The second arose from seven schemes being reclassified as on-balance sheet following revision to Accounting Standards Board guidance in 1998; the result was that these Trusts now had to recognise the asset of the new hospital on their balance sheets and pay capital charges, as would be the case for a publicly funded scheme. There is no overall loss to the NHS as the 6 per cent is financed as part of the overall Trust capital charges provisions.

  3.  The scheme is recurrent: £9.7 million was distributed for 2001-02. As reported last year, distribution is expected to reach a peak of approximately £14.7 million in 2005-06 and return to just over £10 million by 2010-11.

5.4  Long Term Capital Projects and PFI

  5.4.5  Could the Department provide a table showing the increases to the capital cost of schemes since the last expenditure questionnaire and provide a commentary on changes of more than 10 per cent? In addition, could the Department provide the initial costs of PFI schemes at outline business case (baseline year) for those schemes reported in last year's questionnaire and comment on increases? [4.8d]

  1.  The information requested is provided in Tables 5.4.5(a) to 5.4.5(h).

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Prepared 17 February 2003