Dave Thompson MSP

Dear Sir

Private Finance Initiatives (PFIs)

I refer to the article by Mike Russell and the editorial concerning the new Skye hospitals, WHFP 21st March, in which it was reported that an NHS official stated that they would be funded through Private Finance Initiatives.  However, such initiatives have been replaced in Scotland by the new Non-Profit Distributing (NPD) model, which despite its name, caps profits to the private sector.

The scheme is administered by the Scottish Futures Trust (SFT).  This was established in 2008 and introduced as an alternative to the grossly expensive Private Finance Initiatives (PFI) and Public Private Partnerships (PPP) which were introduced by the Conservatives and continued by Labour and are still in use in the rest of the UK.

The SNP's main criticism of the PFI/PPP schemes was that it was too easy for the private sector to make excessive profits – for example, the Skye Bridge PFI which was extortionate.  The NPD model is limiting profits to a reasonable rate and is designed to ensure that contractors and lenders receive the minimum rate of return sufficient for them to justify their involvement.  The SFT is thereby improving the process and effectiveness of the infrastructure investment in Scotland, working with public bodies and industry, which leads to better value for money.

This illustrates the enlightened approach taken by Scottish Government in resolving the problems inherent in the old PFI scheme and its commitment to value for money public services.

Yours Sincerely,

Dave Thompson
SNP MSP for Skye, Lochaber and Badenoch
Thorfin House
Bridgend Business Park
Dingwall
IV15 9SL

Info:

For further information on SFT and its activities: http://www.scottishfuturestrust.org.uk

National Office Audit Report http://www.nao.org.uk/report/peterborough-and-stamford-hospitals-nhs-foundation-trust/