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 Hoodies
Salford Star contact
Deli Lama
advertisement
 
Contact us
phone: 07957 982960
Facebook       Twitter
 
 
Recent comments
article: SALFORD MP SHOULD BE DESELECTED AFTER KEEPING TORIES IN POWER SAYS CONSTITUENT
Slurp, thè real hypocrits are Labour Mps,such as Stringer,Mann and Hoey who are clearly "useful idiots" for the Tory Right!... [more]
article: SALFORD MP SHOULD BE DESELECTED AFTER KEEPING TORIES IN POWER SAYS CONSTITUENT
Labour is led by a man who has voted against his own party's line over 600 times in his parliamentary career. But when someone e... [more]
article: SALFORD UNIVERSITY SACKS TOP PROFESSOR FOR FAILING TO CHASE MONEY
I have had the pleasure of being taught by Jim for the past two years and found him to be the most approachable, helpful, and down... [more]
article: SALFORD UNIVERSITY SACKS TOP PROFESSOR FOR FAILING TO CHASE MONEY
Years ago An old boy of my school who had risen to a very high place in the health service estates section told me what a bunch of... [more]
article: SALFORD UNIVERSITY SACKS TOP PROFESSOR FOR FAILING TO CHASE MONEY
Appalling that some jobsworth could end a career by ticking a box! Well done prof for standing up for education over profit! Hope ... [more]
 
 
 
 
 
Days
Hours
Minutes
Seconds
 
 
 

Donate

Help the Salford Star...

all donations welcome

 
 

More articles...

SALFORD UNIVERSITY SACKS TOP PROFESSOR FOR FAILING TO CHASE MONEY

Star date: 20th July 2018

PROTEST AT THE LOWRY AS STUDENTS GET DEGREES

Yesterday, as students received their degrees at The Lowry, Professor James Newell and UCU supporters were outside raising awareness of how the University of Salford sacked him, after 27 years service, for basically failing to chase money in what has become a national cause against the marketisation of education.

Almost 3,500 people have signed a petition calling for Professor Newell's reinstatement, as he told the Salford Star that marketisation "is the essential issue that underlies the exorbitant fees that students have to pay..."

Full details here...

SALFORD SCHOOL SHUTS AS PARENTS AND PUPILS PROTEST HEAD TEACHER SUSPENSION

Star date: 19th July 2018

HARROP FOLD CLOSES FOR THE DAY DUE TO PROTEST

As pupils and parents prepared to protest the suspension of Harrop Fold head teacher, Drew Povey, and three other staff, the school closed today citing the "distressing effect on our students".

Some pupils, parents and members of the community did show up outside the school gates anyway, with one parent saying the suspensions were "unjust...He needs to be here doing his job".

Full details here...

SALFORD MP SHOULD BE DESELECTED AFTER KEEPING TORIES IN POWER SAYS CONSTITUENT

Star date: 19th July 2018

CALLS FOR GRAHAM STRINGER TO BE DESELECTED FOR 'TREACHERY'

On Tuesday night, Blackley and Broughton MP, Graham Stringer, was one of four Labour Party MPs who voted with the Tories on the latest Brexit proposals, allowing Theresa May to scrape to victory by three votes and avert a possible General Election.

Here, a constituent of the Salford MP and Labour Party member, gives her personal opinion, joining the call for Graham Stringer to be deselected...

Full details here...

PEPPA PIG COMMUNISM GRAFFITI GOES SUBVERSIVE IN SALFORD

Star date: 18th July 2018

'COMMUNISM IS FOR THE CHILDREN' SAYS SUBVERSIVE PEPPA PIG

Bizarre graffiti art has appeared near Salford Central Station depicting two delighted looking Peppa Pigs by the slogan 'Communism is for the children'. The art has led to much amusement and bemusement but is probably related to China banning the popular kids' cartoon.

Full details here...

SALFORD TOWERBLOCK CLADDING RESIDENTS UNITE TO TACKLE PENDLETON TOGETHER

Star date: 18th July 2018

SPRUCE COURT AND THORN COURT TENANTS GET ORGANISED TO FIGHT BACK

"We're sick to death of being treated like dirt..."

Last night, tenants from Spruce Court and Thorn Court met to share concerns over dangerous cladding, fire safety, security and other issues, as they united to take on towerblock manager Pendleton Together and Salford City Council, which owns the blocks.

"They try to ignore what we're saying" insisted one tenant "They're complacent... we're sick to death of being treated like dirt...".

Full details here...

 



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