This month Rugby MP Mark Pawsey joined a cross party group in Westminster started by Jesse Norman MP which is campaigning for a rebate in the payments made under the Private Finance Initiatives.
Mark met with fellow MPs to discuss the group’s plans to meet with PFI contractors in an attempt to persuade them to reduce the cost of their contracts. The group hopes to secure a rebate which will then allow for money to be channelled back into public services for the benefits of local people across the country.
Both the Treasury and the Cabinet Office are supportive of the idea of reducing PFI costs and it has been estimated that a 0.05% cut in the totals paid to all PFI contractors would raise a total of £500million to invest in public services such as hospitals and schools.
Mark said:
“I joined the group as I wish to ensure that the Hospital of St Cross is not affected by the repayment plans in place to the PFI contractors who built University Hospital Coventry & Warwickshire. This year University Hospital will use 14.7% of its annual turnover to pay back its PFI obligations an obligation of £67,473,000. I want to ensure that the people of Rugby, who frequently use the Hospital, are getting value for their taxpayer money and that the PFI contractors are not exploiting their protected position in terms of their lengthy contracts to maintain the hospital.”
Mark added:
“I would like to see the PFI providers rebate a small, but financially significant, portion of their revenue. This money could then be ploughed back into the Hospital to improve its services.”
Mark concluded:
“It has been estimated that across all the country’s PFI schemes £500million could be raised through a 0.05% rebate. This would mean more teachers in our schools and more nurses in our hospitals. This is why I am supportive of these efforts. The people of Rugby, and the country, deserve excellent public services and this rebate would ensure that this will continue to be the case.”