HOME   ARCHIVE   GALLERY   SHOP   ABOUT US      
 

 
BALFOUR BEATTY CASHES IN ON SALFORD ROYAL HOSPITAL PFI
 

Star date: 2nd July 2013

AS SALFORD ROYAL MAKES HUGE CUTS, PFI  FLOG-OFF MAKES £11.5M PROFIT

While Salford Royal Hospital (Hope) is struggling to make cuts of £19million, construction company Balfour Beatty is boasting about flogging off its 50% share in the Hospital's PFI deal for a profit of £11.5million – which `exceeded the Directors' valuation by £8.3million'.

The PFI financed the new extensions to the Hospital which were completed recently, and tax payers will be paying back more than three times the initial cost of the redevelopment over the next thirty years or so.

Full details here…


Salford Royal Hospital
click image to enlarge

Salford Royal Hospital is currently struggling to make `savings' of £19million, as health gets hammered under the ConDem Government.

Meanwhile, Balfour Beatty, the construction company involved in the development of the Hospital's new `drum' buildings facing Eccles Old Road, has made a huge £11.5million profit by flogging off its 50% interest in the PFI (Private Finance Initiative) scheme which financed the original deal.

An announcement on Balfour Beatty's website states that its "Salford Hospital PFI asset" has been "disposed" to "a subsidiary of HICL Infrastructure Company Limited for a consideration of £22million, generating a gain on disposal of £11.5 million. The proceeds from the transaction…exceed the Directors' valuation by £8.3 million."

It's not surprising that Balfour Beatty was able to cash in on its `asset' – there's rich pickings in PFI. The Salford Star reported three years ago that, according to government figures, the initial capital cost of £190million for the PFI redevelopment of Salford Royal Hospital will end up costing tax payers £620million by the end of its 34 year pay back to private investors (see here).

Figures from Salford Royal Hospital Trust reveal it will be paying back almost £5.5million in interest alone on the PFI  this year - while it struggles under the weight of finding £19million `savings'.

Meanwhile, Balfour Beatty is gloating all the way to the bank…

"It is pleasing to see that our strategy of regular asset disposals to release some of the accumulated value in our portfolio continues to deliver additional income and cash to the Group" its Chief Executive, Andrew McNaughton, said yesterday "With the completion of the Salford Hospital sale, we have achieved £80.5 million of proceeds and £44.9 million of gains on PFI disposals so far this year."

Next in line for profit hungry developers is the Pendleton PFI housing project (see here). Already denounced by the Government as too expensive, Salford Council is having to ditch the banking profiteers and go down the `bonding' route of finance in order to salvage the massive redevelopment. Even so, there should be no shortage of takers. These publicly financed `Private Finance Initiatives' are like printing money for Fat Cats…

 

 

Martin Gilleland wrote
at 06:28:23 on 10 July 2013
"An announcement on Balfour Beatty's website states that its "Salford Hospital PFI asset" has been "disposed" to "a subsidiary of HICL Infrastructure Company Limited for a consideration of £22 million, generating a gain on disposal of £11.5 million. The proceeds from the transaction…exceed the Directors' valuation by £8.3 million." HICL Infrastructure Company Limited website gives its reasons for being involved in PFI. In fact 87 projects across the UK and the main reason is profit. Not surprised the company is based in Guernsey, Channel Islands
 
tony blair, say's wrote
at 19:12:13 on 03 July 2013
the thing is jack, the people that are signing us up to this are going to be long dead before the shit hits the fan, but their immediate families are going to be very wealthy, and this is what it is all about.ps hazel blears said she'll buy the magic beans off you for couple of hundred grand, she'll try to hide it under mars bars in her expenses,
 
Jack wrote
at 14:33:30 on 03 July 2013
Ah PFI, another Labour policy that is going to screw up the next generation. That's right folks we were all amazed that the idiots running the country at the time signed up to this deal, but not to worry it don't end there, if Salford council have their way they will be leaving us all in debt for the next 30 years with repayments we CAN'T afford. I do advise Salford council that a better investment maybe made purchasing magic beans than ploughing more money in to Pendleton under a PFI scheme.
 
Please enter your comment below:
 
 
 
Salford Star CD
Salford Star contact
Deli Lama
advertisement
 
Contact us
phone: 07957 982960
Facebook       Twitter
 
 
Recent comments
article: ARTISTS TAKE UP RESIDENCE IN CONTROVERSIAL URBAN SPLASH SALFORD DEVELOPMENT
What a pretentious pile of nonsense. And no doubt this sponsorship is not only paying for this, but also to keep their own homes e... [more]
article: SALFORD STAR EDITOR NAMED IN NCTJ LIST OF MOST RESPECTED JOURNALISTS IN UK
Ideally the Salford Star would be self funding if it could get enough advertising in. It would be great if it could get out in pri... [more]
article: ARTISTS TAKE UP RESIDENCE IN CONTROVERSIAL URBAN SPLASH SALFORD DEVELOPMENT
I’m no fan but I know for a fact Mr Bloxham doesn’t live in Worsley and does live in one of his own developments - there’s plenty ... [more]
article: ARTISTS TAKE UP RESIDENCE IN CONTROVERSIAL URBAN SPLASH SALFORD DEVELOPMENT
This Mr Bloxham they are talking about. Is he the same one that was persuaded by Hazel Blears to save all the upside down houses n... [more]
article: ARTISTS TAKE UP RESIDENCE IN CONTROVERSIAL URBAN SPLASH SALFORD DEVELOPMENT
Have I missed something? is it April 1st and I have got the wrong calendar out. The story borders sadly on farce what next. ... [more]
 
 
 
 
 
Days
Hours
Minutes
Seconds
 
 
 

Donate

Help the Salford Star...

all donations welcome

 
 

More articles...

SALFORD MP RAILS AGAINST GOVERNMENT AS FRACKING BEGINS IN FYLDE

Star date: 16th October 2018

REBECCA LONG-BAILEY SLATES 'GREEN GREAT BRITAIN' TORIES AS WESTWOOD DANCES ON CUADRILLA'S INJUNCTION LINE

Salford and Eccles MP, Rebecca Long-Bailey, slated the Tory Government in Parliament yesterday, pointing out "What a terrible irony it is that the first day of Green Great Britain Week is the day that fracking is due to commence..."

Today, Vivienne Westwood performed a break dance to Abba's Dancing Queen on Cuadrilla's 'draconian injunction line' outside the Preston New Road site in a dig at Theresa May's hopeless jig at the Tory conference and to stand up for the right to protest.

Full details here...

ARTISTS TAKE UP RESIDENCE IN CONTROVERSIAL URBAN SPLASH SALFORD DEVELOPMENT

Star date: 15th October 2018

ARTISTS TO CHALLENGE HOUSING POLICIES WHILE LIVING IN LUXURY HOUSE

'You can't even stop your car to take in the breathtaking sterilization of the place...'

Last week, artists moved into a stunning Urban Splash house in the new Springfield Lane development as part of a year-long project called Tenancy in which they will explore 'what it's like to live in a city negotiating rapid change' and 'who is benefitting'.

The Springfield Lane development, being branded as in 'Manchester', has no affordable housing and avoided hundreds of thousands of pounds in planning fees. Can the artist project, actually sponsored by Tom Bloxham and Urban Splash, make a difference?

Full details here...

HUGE INTERNATIONAL FILIA WOMEN’S CONFERENCE COMES TO ECCLES

Star date: 14th October 2018

SALFORD STREET SUPPORT TO TALK AT LARGEST UK WOMEN'S RIGHTS CONFERENCE

FiLia 2018 Conference
Saturday and Sunday 20th and 21st October
The Lighthouse, Eccles

The massive FiLiA international conference is to take place in Eccles next weekend, with women flying in from all over the world, including from Argentina and Palestine.

There's over two dozen sessions covering all feminist-related subjects, and from Salford, Angela Barratt of Salford and Manchester Street Support will be speaking on women and poverty, while Salford University lecturer, Suryia Nayak, will be giving an Introduction To Consciousness Raising.

Full details here...

COUNTESS WHO MURDERED 650 WOMEN ARRIVES AT EAGLE INN SALFORD

Star date: 14th October 2018

HUNGARIAN GOTHIC DRAMA BASED ON TRUE STORY OF MURDER AND VANITY

Countess
Monday 29th October 7pm and Tuesday 30th October 4pm and 7pm
Eagle Inn £10/£8

A truly gothic production of Countess arrives at the Eagle Inn on 29th and 30th October, based on the true story of Hungarian aristocrat, Elizabeth Bathory, who murdered 650 women for the sake of her vanity. This aims to get inside of her mind with a supernatural twist.

Full details here...

SALFORD WINTER WONDERLAND COMMUNITY COSTUME MAKING DAY

Star date: 14th October 2018

WOODY, BUZZ AND CHASE AT BROUGHTON CRICKET CLUB

Creating Carnival
Saturday 20th October 12noon-4pm free
Broughton Cricket and Rugby Club

Next Saturday, 20th October, Toy Story characters Buzz Lightyear and Woody, plus Paw Patrol's Chase and Santa and Mrs Claus will be at Broughton Cricket and Rugby Club as part of a free Salford Winter Wonderland community day, making costumes and props for a massive event and carnival parade happening at the end of November. It's free and everyone is welcome to attend.

Full details here...

 



written and produced by Salfordians for Salfordians
with attitude and love xxx