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Renegotiate hospital PFI debts to fair value and use criminal prosecution where necessary

Jeremy Corbyn has called for the Labour party in opposition to campaign for a fund to be set up to bail out NHS trusts from PFI schemes that were forced upon them under the New Labour government.

This is in line with the current draft of the 2015 NHS Reinstatement Bill, that Jeremy Corbyn has co-sponsored as a Private Members Bill along with Caroline Lucas MP and other MPs.

The Bill is due to receive its second reading on 11 March 2016 and it’s vital that all opposition MPs support it – as well as Conservative MPs who respect the wishes of the 77% of Tory supporters who want a publicly-owned and run NHS.

However, not all supporters of the NHS Reinstatement Bill are happy with the section that calls for removal of PFI debts from hospitals and centralisation of the debts in the Treasury, and discussions are underway about proposed amendments to this bit of the Bill.

This is because removing PFI debts from hospitals (which is also the aim of Corbyn’s proposal of fund to buy out the hospital Trusts’ PFI debts) doesn’t do anything to tackle the inappropriate PFI debts, and it helps the PFI lenders launder debts which were arrived at in inappropriate situations – as work by Professor Allyson Pollock documents. Continue reading

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