PFIs ‘safe’ despite NHS trust administration
The administrator will now undertake a report, to be published by mid-January, with recommendations from that report then being implemented from next year.
However, concerns that the administrator could suggest tampering with or undermining the two PFI contracts have been allayed, as he has already suggested any changes to those contracts would be up to central government and not the trust itself.
Experts also suggested the government is unlikely to allow the public sector to default on its PFI repayments, not least because of the impact that would have on investor confidence in the market at a time when the government is trying to engineer a new model for private investment.
“They would be facing litigation from the private sector, compensation claims, and a whole sea of trouble, frankly,” said one lawyer.
Another pointed to the NHS Act 2006, which makes it likely that either a neighbouring health authority or the Health Secretary himself will take responsibility for the PFI repayments.