N H S Could Lose Millions On P F I Land Clauses

[Guest Charlie The Tramp]

Developers will be handed huge swathes of land worth hundreds of millions of pounds, if the NHS fails to maintain a string of controversial Private Finance Initiative contracts, it can be revealed.

Five hospitals are being run under PFI deals that give the private-sector partners a land lease extending far beyond the original contracts to provide and maintain NHS buildings.

The land at risk was originally valued at more than £500 million but could be worth far more if developed now for housing on the open market, property experts say.

Hospitals signed up to contracts lasting up to 60 years, with "break points" at which the National Health Service could terminate the deal. It was never made public that if the NHS does not fulfil the entire contract, the private firms keep the land leases, which could then be used for housing developments. One lease runs for 125 years.

The nature of the contracts has been disclosed under the Freedom of Information Act. The details have emerged alongside evidence that non-PFI hospitals are increasingly vulnerable to cuts and closures because they have bills outstanding over decades, while PFI sites are protected.

Should the NHS terminate its 60-year agreement early at the Queen Elizabeth Hospital in Woolwich, south-east London, the contractors Skanska and Innisfree will gain the right to use the land and buildings until 2126. The lease on the 600-bed hospital and 27 acres of land runs 125 years from the complex's opening in 2001. Knight Frank, the property consultants, said the site, now worth £45 million, could bring in three times as much if it were used for housing.

The taxpayer loses out once again.

NHS could lose millions on PFI land clauses

[BuyingBear]

Most London PFI hospitals will eventually become BUPA hospitals or hotels.

[South Lorne]

The taxpayer loses out once again.

NHS could lose millions on PFI land clauses

I wonder who set up the deals on the Government side.......worth getting names.

[chichi]

The whole of PFI will come back and bite the taxpayer. Its been designed that way.

[South Lorne]

The whole of PFI will come back and bite the taxpayer. Its been designed that way.

....yes ...but the main issue is ...who gains?.....and who in government assisted them?

[Ash4781]

The land at risk was originally valued at more than £500 million but could be worth far more if developed now for housing on the open market, property experts say.

Robert Tchenguiz again ?

Edited May 20, 2007 by Ash4781

[South Lorne]

could bring in three times as much if it were used for housing.

Most farmers fields could bring in ten times as much in the same context.

[THE BALD MAN]

....yes ...but the main issue is ...who gains?.....and who in government assisted them?

PFI is the public sector equivalent of Enron! I hope this comes back and bites Gordan!

[Jason]

Here's a video on PFI by dispatches (click):

PFI is a total disgrace, Gordon Brown should be held acccountable for this mess!!!