[A-List] UK corporate state: unhealthy accumulation

["Michael Keaney" <michael.keaney@xxxxxx>]

Milburn clashes with Unison over PFI

David Gow and Larry Elliott
Wednesday November 27, 2002
The Guardian

Alan Milburn, the health secretary, yesterday clashed with Britain's biggest
union when he promised to import private care from overseas to cut waiting
lists and warned that the government's controversial private finance
initiative to build hospitals was "here to stay".

Mr Milburn told the CBI's annual conference in Manchester that Labour was
committed to a twin-track strategy for the NHS - more money matched by
fundamental reform.

But his vision failed to impress general secretary of Unison Dave Prentis,
who told the employers' organisation that he opposed giving the new breed of
foundation hospitals more freedom and called for a review of the PFI.

Mr Milburn said that in addition to sustained growth in NHS provision, he
would "bring new private sector providers from overseas into this country to
further expand NHS services. As other European nations show, a public health
care system based on centre-left values does not need to be exclusively
delivered by state run line managed public sector organisations".

The government's use of PFI has run into strong opposition from unions, who
have argued that the schemes end up costing more, lead to a reduction in
hospital beds and create poorer working conditions for staff.

Mr Prentis, in a round table discussion with Mr Milburn, said: "There should
be a review of PFI. It is about being prudent. It is the taxpayer who pays
and there are certain fundamental questions. Is the taxpayer getting value
for money? Is the public sector getting a fair deal? Are we getting
innovation? What are the implications of a long term contract? Why have we
allowed the creation of a two tier workforce?

Mr Milburn said: "Despite what its sometimes vocal opponents say, PFI is a
partnership that works. As an addition, not an alternative to public sector
capital investment, PFI is helping deliver the biggest new hospital building
programme the NHS has ever seen. It is allowing more new NHS buildings to be
built more quickly. PFI is here - and it is here to stay."

Mr Prentis also expressed concern that the government's new flagship
hospitals would operate outside the NHS, a view strongly challenged by Mr
Milburn.

The CBI said that it wanted to bridge the divide between supporters and
opponents of PFI. It launched a statement of intent at its annual conference
in an attempt to communicate private sector objectives and obligations when
delivering public services.

Digby Jones, the CBI's director-general, said: "The quality of the
public-private debate has been appalling. We need to get away from
confrontational language and focus the discussion on delivering quality
services to the taxpaying public."