Fair deal for Norfolk on PFI costs

11.59.00pm GMT Wed 30th Mar 2005

Two leading Norfolk Liberal Democrats are today launching a campaign to force the Government to address the crisis of funding in Norfolk's health service.

The demand by North Norfolk MP Norman Lamb and Dr Ian Mack, Liberal Democrat candidate in South Norfolk, follows revelations in papers obtained by Norman Lamb under the Freedom of Information Act. It has emerged that health chiefs were warning the Government 2 years ago that Norfolk's health service faced damaging cuts as a result of the high cost of the new PFI funded Norfolk & Norwich Hospital.

"It is clear now that senior figures in the Norfolk Health Service saw what was coming. They had asked the Government to allow them to receive a lump sum payment from re-financing up front so that the historic deficit could be cleared. I also led a delegation of Norfolk MPs to see Health Minister Stephen Ladyman. The Government refused, and now we are seeing the consequences - a massive black hole and the risk of serious cuts in services if they are to balance the books.

"The papers make it very clear that one of the main causes of the black hole is the cost of the new hospital and there is a widely held view that we paid over the odds for the hospital because it was a pioneer PFI hospital. Since then, the costs of private finance have come down."

Norman Lamb has referred the PFI contract to the National Audit Office and is expecting their judgement in the form of a parliamentary report very soon.

Dr Ian Mack said: "Health care in Norfolk continues to suffer due to the high cost of the Norfolk and Norwich Hospital, vital investments in key services such as Mental Health are being sacrificed on the altar of the PFI. As we know there are wards in Norwich listed for closure by the Mental Health Trust as it seeks to make cuts to generate cash to finance vital new therapies for those over 65 with Mental Health problems.

"PCTs are hard pressed with their budgets for the coming year and my recent meeting with the Chair and Chief Executive of Southern Norfolk PCT has confirmed they have no option but to set a deficit budget for 2005/2006, or cut existing services to balance the books. It's time Norfolk's health service was properly funded to recognise the high cost of the Norfolk and Norwich PFI scheme, and stop the damage it is causing to my patients and restricting the care they deserve".

Norman Lamb and Ian Mack are calling for the Government to come to Norfolk's rescue.

"Patients should not pay the price for Norfolk being a pioneer in PFI funding. The Government should recognise the unfairness and help out. My fear is that we will never be able to clear this deficit unless patient services are cut," said Norman Lamb. "That would be unacceptable."