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Public funds boost for hospital | Public funds boost for hospital |
(20 minutes later) | |
The most expensive hospital to be built in Scotland will be funded by the Scottish Government. | The most expensive hospital to be built in Scotland will be funded by the Scottish Government. |
Public Health Minister Shona Robison said that £842m would be spent "completely redeveloping" the Southern General Hospital in Glasgow. | Public Health Minister Shona Robison said that £842m would be spent "completely redeveloping" the Southern General Hospital in Glasgow. |
The new building will incorporate a state of the art children's hospital. | The new building will incorporate a state of the art children's hospital. |
NHS Greater Glasgow and Clyde will fund about a third of the cost of the project, but the bulk, £552m, will be provided by the Scottish Government. | NHS Greater Glasgow and Clyde will fund about a third of the cost of the project, but the bulk, £552m, will be provided by the Scottish Government. |
Ms Robison announced the funding details on Tuesday morning. | Ms Robison announced the funding details on Tuesday morning. |
She said: "In considering the options for funding this project, the Scottish Government has sought to ensure that the project is deliverable, affordable, sustainable and represents best value for money for the taxpayer." | She said: "In considering the options for funding this project, the Scottish Government has sought to ensure that the project is deliverable, affordable, sustainable and represents best value for money for the taxpayer." |
The SNP administration has in the past criticised the use of Private Finance Initiatives (PFI) to fund public sector building projects, a policy followed by the previous Labour-Lib Dem coalition. | The SNP administration has in the past criticised the use of Private Finance Initiatives (PFI) to fund public sector building projects, a policy followed by the previous Labour-Lib Dem coalition. |
Under PFI, and its "public private partnership" (PPP) successor, a private sector consortium designs, builds and finances a health institution. | |
It is then rented back to the health board, which is charged for the running costs. | |
Shona Robison announced the funding details | Shona Robison announced the funding details |
Alex Salmond had promised to introduce not-for-profit trusts as an alternative to PFI, but the SNP's manifesto made it clear that councils and other public bodies would be able to choose how to fund building projects - leaving private finance open as an option. | Alex Salmond had promised to introduce not-for-profit trusts as an alternative to PFI, but the SNP's manifesto made it clear that councils and other public bodies would be able to choose how to fund building projects - leaving private finance open as an option. |
The Southern General project plans to deliver an adult hospital with 1,109 beds and a 240-bedded children's hospital by 2014. | The Southern General project plans to deliver an adult hospital with 1,109 beds and a 240-bedded children's hospital by 2014. |
The development would signal the end of acute services at Glasgow's Western Infirmary and the Royal Hospital for Sick Children at Yorkhill. | The development would signal the end of acute services at Glasgow's Western Infirmary and the Royal Hospital for Sick Children at Yorkhill. |
In-patient acute services would also be transferred from the city's Victoria Infirmary. | In-patient acute services would also be transferred from the city's Victoria Infirmary. |
NHS Greater Glasgow and Clyde recommended public funding over private in its case to the Scottish Government. | NHS Greater Glasgow and Clyde recommended public funding over private in its case to the Scottish Government. |
Its chairman, Andrew Robertson, said the Scottish Government's approval of the project was "truly historic" for the NHS in Scotland. | Its chairman, Andrew Robertson, said the Scottish Government's approval of the project was "truly historic" for the NHS in Scotland. |
"Our proposals for the new campus represent the largest investment in health services ever undertaken in Scotland," he added. | "Our proposals for the new campus represent the largest investment in health services ever undertaken in Scotland," he added. |
"It will see Glasgow become home to the largest, most advanced single NHS development in Scotland. | "It will see Glasgow become home to the largest, most advanced single NHS development in Scotland. |
"Investment in the new hospitals and maternity unit, together with the new laboratory facility will transform the experience of healthcare for patients and staff alike." | "Investment in the new hospitals and maternity unit, together with the new laboratory facility will transform the experience of healthcare for patients and staff alike." |
'New life' | 'New life' |
He also claimed the building programme would "breathe new life into Govan and the wider area". | He also claimed the building programme would "breathe new life into Govan and the wider area". |
"Without doubt the biggest single factor in the regeneration of the area is this development boosting wealth, business opportunities, local jobs plus transport and environmental improvements," he said. | "Without doubt the biggest single factor in the regeneration of the area is this development boosting wealth, business opportunities, local jobs plus transport and environmental improvements," he said. |
Donald Sime, the health board's employee director, said the fact that the hospital would be publicly funded was "terrific news for both patients and NHS staff". | Donald Sime, the health board's employee director, said the fact that the hospital would be publicly funded was "terrific news for both patients and NHS staff". |
"The joint trades unions are delighted that the Scottish Government has agreed to fund this major hospital build by public procurement," he said. | "The joint trades unions are delighted that the Scottish Government has agreed to fund this major hospital build by public procurement," he said. |
"Other funding routes could have meant NHS staff tendering for the opportunity to provide services such as catering, cleaning and other support services. | "Other funding routes could have meant NHS staff tendering for the opportunity to provide services such as catering, cleaning and other support services. |
"However, this confirmation of public funding now ensures that the new hospital campus will be run and managed by the full NHS team." | "However, this confirmation of public funding now ensures that the new hospital campus will be run and managed by the full NHS team." |
Glasgow City Council has already granted outline planning permission for the development. | Glasgow City Council has already granted outline planning permission for the development. |