BuiltWithNOF
The Issues

There are so many issues, it’s hard to know where to start

But Private Finance Initiative is probably the best place.

In 1997, when Labour came to power, no PFI hospital building contracts had actually been signed. In the public’s mind, the Labour party seemed hostile to the policy.

In fact, on the 12th of March 1996, Harriet Harman (right) described PFI as a “Trojan horse for privatisation”.

How things have changed.

How many voters in May 1997 would have believed New Labour would embrace PFI as a flagship policy and continue, and even accelerate, the Americanisation of the NHS?

Harriet Harman

Harriet Harman

What is PFI?

In essence, a PFI project is where the government or the Scottish Executive goes to a consortia to fund, design, build and operate a new hospital, typically for 30 years. There are three key factors:

1. The Private sector can not borrow money as cheaply as government can;

2. The consortia must generate profits for its shareholders;

3. A new layer of bureaucracy and management is created, both with the NHS and the consortia to negotiate and monitor contracts and subcontracts, all of which has to be paid for by the NHS.

ERI02

Edinburgh Royal Infirmary the first PFI contract in Scotland

PFI projects typically go hand in hand with cuts elsewhere. For example, to help pay for the costs associated with the ERI, above, Lothian Health Board cut acute care beds by 24%, not just in Edinburgh, but across the Lothian’s.

Monklands A&E

The planned closure of Monklands A&E must be the most outrageous con-sequence of PFI. Lanarkshire Health Board operates 3 A&E units, 2 of which are based in PFI hospitals. So how could a health board balance the books?

Would it close the least efficient unit - or maybe the quietest unit? No, it decided to close the busiest and most efficient A&E unit - at Monklands.

Why? Could it be because the other 2 units are locked into 30 year contracts?

Our concern is that the closure of the Monklands A&E unit will not balance Lanarkshire Health Boards books and that the entire hospital will have to close.

monklands-a-e02

Monklands A&E -stitched up by Labour

HOSPITAL COSTS SHOCKER

The NHSFirst party is launching their 2007 election campaign at the Airdrie Working Men’s Club on Wednesday at 7pm, where Mev Brown will announce the NHSFirst policy to replace PFI, its key weapon in its Save Monklands A&E Campaign.

The party will be re-launching the Save the Monklands A&E campaign website, at:          www.savemonklandsa-e.org.uk”.

Westminster Issue: the NHS Stealth Tax

We have been working on our a policy proposal to replace PFI when I was found out about a charge levied on the NHS estate.

I have looked over the public accounts of several NHS Boards, but have never seen this charge detailed in the accounts. I was told that is the case. I was stunned.

Initially, I assumed it was a rental cost. But off course, the NHS is a devolved area, so if it was rent, the money would go to either the NHS Board or, more likely the Scottish Executive.

They my concern was that this charge is just another of Gordon Brown’s infamous stealth taxes. But this time, it is on the NHS.

The charge is levied at a rate of 3.5% of the asset value. The money goes to the treasury, so it can only be described as a tax

A hospital valued at £100 million, would means a tax revenue of £3.5 million payable to Gordon Brown at the treasury.

My fear is this stealth tax is, effectively, a mechanism to starve the NHS of funds to build hospitals themselves and forces NHS Boards down the road of PFI – the road of privatisation.

GordonBrown

Rt. Hon Gordon Brown MP

This is an appalling state of affairs. I have written to the Chancellor regarding this.

Capital Charges in brief

Nurses Pay

nurses-station sm

Nurses 'ready to strike' over poor pay deal

Nearly two-thirds of nurses would be willing to take industrial action if they receive an unsatisfactory pay deal this year.

With the Pay Review Body due to announce the 2007-08 recommended pay award for nurses any day now the RCN is urging the independent review body to give nurses a fair deal that reflects the real cost of living rather than the pay cut the government is proposing.

IThe government has recommended the Pay Review Body offer nurses a 1.5% pay deal. With the real rate of inflation currently running at 4.2%, this amounts to a real terms pay cut of 2.7%. For the average nurse that means a £670.70 drop in their annual pay packet.

What are the factors surrounding Nurses Pay?

We feel the following issues must be considered when looking at nursing pay:

  • For as long as I can remember, the UK has been short of nurses. The economic principle of supply and demand demonstrates that nurses have been, and continue to be, underpaid.
  • From the employer’s perspective and as the RCN rightly points out, (the NHS is the worlds third largest employer) nurses pay will have a direct impact on the UK economy. As well as a possible effect on other wage negotiations.
  • Project 2000 was introduced in the early 90’s and saw the introduction of the nursing degree. The Nursing profession is changing and this must to continue. And as part of this, the division of Labour between nurses and Doctors must be looked at. Consider an example: a voter told me that he went to A&E to get a deep cut treated. Within minutes of arriving he was evaluated by a nurse. Four hours later his wound was stitched by a doctor. And yet a nurse is perfectly capable of treating such a wound. Why keep patients waiting needlessly?
  • As matter of pragmatism any prospective a pay rise would have to be found from within the existing NHS budget. And this, again, underlines the need of looking at the division of labour.
  • Finally, I feel safe in saying that substantial, if not vast, sums of the NHS budget are being squandered – particularly on excessive PFI charges.
  • Many are unaware that NHS pay is a devolved matter. As a unionist and former Unison shop steward, I fully appreciate the principle of national, UK-wide, pay negotiations.

    As a former Territorial Army squaddie, I could not imagine different rates of pay for soldiers (or any other public servant for that matter) north or south of the border.

    But, should Scottish Ministers look at a separate pay deal with the nursing unions? Can we really be looking at industrial action from nurses? Difficult questions indeed.

    A better question is: “Is the NHS safe in Labour’s hands?”

    I think this is an opportunity for the Scottish tail to wag the British dog, as part of wider NHS reforms including the financial management of the NHS. E-mail me your views.

    Westminster Issue: Iraq

    Did you know that Tony Blair knew, BEFORE the invasion, that there were no Weapons of Mass Destruction in Iraq? Follow this link for more information: Carne Ross If you have problems with this link, do a google search on “carne ross”.

    I feel we, as a nation, have a right to know why Labour took Britain to war.

    Those that lost loved ones have a right to know why they died.

    Westminster needs to hold a  full parliamentary enquiry and hold Labour to account.

    No more “its an official secret”, no more ducking and diving. We want answers.

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