PFI – a licence to print money?

“Carillion made £500m in revenue from selling off Private Finance Initiative (PFI) projects between 2003 and 2011, with many deals handing the construction firm returns of more than 15 per cent per year.

The most lucrative sale was of three NHS hospital buildings in Staffordshire, Swindon and Glasgow in 2007 which netted Carillion a 38.7 per cent annual return, according to analysis by the European Services Strategy Unit (ESSU). Around £200m of the sales came after 2010, the figures show.

Several of the purchasers are based offshore meaning they pay no UK corporation tax on the profits they derive from the schemes, which are ultimately paid for by taxpayers, the ESSU research found. …

… There are currently 735 operational PFI and PF2 deals, with a capital value of around £60bn. Annual charges for these deals amounted to £10.3bn in 2016-17, the NAO found. Even if no new deals are entered into, future charges which continue until the 2040s will amount to £199bn.

Earlier research by the ESSU found that nine offshore funds own between 50 per cent and 100 per cent of the equity in 335 PFI projects across the UK. The funds own 45 per cent of all current projects, ESSU said. …”

http://www.independent.co.uk/news/business/news/carillion-made-500m-in-revenue-from-pfi-projects-with-annual-returns-of-up-to-39-research-finds-a8180986.html

Claire Wright: “Care at home isn’t working, Sidmouth GP tells Devon County Council’s Health Scrutiny Committee”

From the blog of Claire Wright:

Carers aren’t available to look after people in their homes, a Sidmouth GP told Devon County Council’s Health and Adult Care Scrutiny Committee on Thursday (25 January).

So concerned at the unavailability of care in people’s homes – the service designed to replace community hospital beds, Dr Mike Slot travelled to County Hall to share his concerns with the health scrutiny committee.

After he had finished his submission I tried to ask a question, but was prevented from doing so by the chair and scrutiny clerk, who informed me that it was against the rules for councillors to ask questions of public speakers!  This was the first I knew of it since my proposal to bring in public speaking to scrutiny was agreed two years ago.

The Head of Social Care and the committee chair both intimated that Dr Slot’s view may be an isolated one…. I am less convinced.

At the end of the meeting in the work programme I successfully proposed a spotlight review to investigate Dr Slot’s concerns fully.

Another member of the public was told she was not able to speak to the committee because she missed the deadline, despite there being slots available.

I have since contacted the officer presiding over the Procedures Committee (which I am a member of) to get the rules reviewed. They will now be debated at the the April committee.

I asked Dr Slot for a copy of his speech, which is below.

If community hospital beds was intended to be offset by increasing the capacity of community care so that patients could be cared for in their own homes. This may or may not have been realistic since many of the patients in the hospital system cannot be managed in the community even with excellent community services.

However, with or without community hospital beds it is an excellent idea to expand community services so that all those patients who can be cared for out of hospital can remain at home. Unfortunately there is not sufficient capacity in the home care services to do this job.

When GPs ring the single point of access number asking for rapid response or night sitting, the carers are not available. This is partly due to lack of resources and partly due to difficulty with recruitment. I suspect that part of the difficulty with recruitment may be due to the terms and conditions. If the carers only get paid if they are required then this may not be particularly attractive.

We understand that a hospital only functions well with a maximum of 85% bed occupancy, and similarly with the home care service we need to accept that there will be some unused capacity otherwise the service is never able to accept unexpected cases. Thus we need to allocate enough resource so that we can offer both an attractive rate of pay and attractive terms and conditions.

This is in fact an essential part of the answer to the problem the entire NHS is experiencing. If the level of water in a reservoir is steadily rising and then overflows, you can either try and build the banks higher in which case it will just overflow a bit later, or you can look at the streams going in and going out of it.

Similarly when you see an overflowing A&E or hospital you can buy more A&E or acute beds (very expensive) or you can increase community capacity to prevent people going in and facilitate people coming out (relatively much cheaper but you still have to pay a proper rate for it).”

http://www.claire-wright.org/index.php/post/care_at_home_isnt_working_sidmouth_gp_tells_devon_county_councils_health_sc

“50 disused quarries turned into wildlife habitats to help Britain’s endangered birds”

Owl says: Alas not Clinton Devon Estates Blackhill Quarry, promised for environmental restoration, now subject of a heavily industrial planning application:

https://eastdevonwatch.org/2018/01/26/woodbury-business-park-expansion-would-be-morally-and-ecologically-wrong/

… “A conservation project to turn 50 quarries into nature reserves by 2020 has been completed two years early and is already saving endangered species, like the turtle dove.

In 2010, the RSPB joined forces with building materials supplier CEMEX to rejuvenate dozens of disused quarries.

And within fewer than eight years, 1,000 hectares of grassland, woodland, heath and wetland has been created which is helping rare and unusual species to flourish including 50 ‘at risk’ species.

Threatened birds which have moved into the conservation areas include turtle doves, choughs and twites, all of which have seen huge falls in numbers in the past decades. …

… Andy Spencer, Director of Sustainability, CEMEX UK said: “While supplying our customers with concrete, cement, sand and stone we also aim to balance the needs of operations with the protection and enhancement of the natural world. The RSPB has been pivotal in helping us to achieve this aim.

“The 1000th hectare that has just been created is a significant and outstanding milestone and our partnership to date has helped create some amazing places for communities and nature.”

http://www.telegraph.co.uk/science/2018/01/27/50-disused-quarries-turned-wildlife-habitats-help-britains-endangered/

“Building more homes in London won’t solve the country’s housing crisis”

Owl says: most homes in the Devon and Somerset Local Enterprise Partnership area are being built near Hinkley C nuclear power station to house up to 5,000 largely temporary workers.

“… England’s fragile economic growth is underpinned by household expenditure, which accounts for 63% of gross domestic product. This is dependent upon perceived wealth, which is directly correlated with the price of housing. House price growth has left homeowners (particularly in London) feeling richer while renters feel poorer. To undermine that perception of affluence among homeowners would have a significant economic impact.

So there is huge demand for new housing, but little incentive for policymakers to deliver this where greatest demand exists. We need an answer that is politically expedient, economically pragmatic and socially responsible.

The government needs to avoid house price depreciation but stabilise prices in London, where there is highest demand. Affordability is a spatial problem that demands a spatial solution. It must focus attention on areas where the ability to purchase and the cost of doing so are more closely aligned. The mayor’s plan for London could then focus policies on providing genuinely affordable homes for Londoners.

The Midlands engine and northern powerhouse are attracting and retaining investor attention, and elected mayors in Bristol, Birmingham and Manchester, among others, are beginning to flex their muscles. Yet this is as much a reaction to the London market as any proactive national policies. Clearer government leadership would expedite change and provide greater long-term certainty.

Investment and infrastructure decisions are being made but are too often buried within various national plans ‘and strategies. They should be bought to the forefront. Every other country in western Europe has a national spatial plan; England should publish one too. This would make clear how spending and policy decisions are related, supporting regional revival.

The housing paradox is stifling. To solve it, we must take a pragmatic approach that supports England’s regions. That would not be at the expense of London, but we could all be better served by casting a wider net.”

https://www.theguardian.com/housing-network/2017/nov/17/building-homes-london-wont-solve-housing-crisis?CMP=Share_iOSApp_Other