Table 5.4.4(i)
2. Last year an addendum was submitted to
the Committee which reported on new arrangements which had been
introduced to meet certain costs arising from PFI schemes and
which could be classed as revenue costs. The first resulted from
meeting the 6 per cent cost of capital on land and buildings transferred
to the private sector on a number of early PFI schemes which arose
following the introduction of new guidance in 1999. To meet the
cost of capital on these we reported last year that a revenue
support scheme had been set up which would distribute £9.3
million between 27 eligible Trusts for 2000-01. The second arose
from seven schemes being reclassified as on-balance sheet following
revision to Accounting Standards Board guidance in 1998; the result
was that these Trusts now had to recognise the asset of the new
hospital on their balance sheets and pay capital charges, as would
be the case for a publicly funded scheme. There is no overall
loss to the NHS as the 6 per cent is financed as part of the overall
Trust capital charges provisions.
3. The scheme is recurrent: £9.7 million
was distributed for 2001-02. As reported last year, distribution
is expected to reach a peak of approximately £14.7 million
in 2005-06 and return to just over £10 million by 2010-11.
5.4 Long Term Capital Projects and PFI
5.4.5 Could the Department provide a table
showing the increases to the capital cost of schemes since the
last expenditure questionnaire and provide a commentary on changes
of more than 10 per cent? In addition, could the Department provide
the initial costs of PFI schemes at outline business case (baseline
year) for those schemes reported in last year's questionnaire
and comment on increases? [4.8d]
1. The information requested is provided
in Tables 5.4.5(a) to 5.4.5(h).
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