Hospital site work pledge

Jan 19 2006 By Alison Dayani, Birmingham Mail

HEALTH bosses who may not get approval for Birmingham's new "super hospital" today gave reassurances over building work.

Work started on land next to Queen Elizabeth Hospital, off Metchley Lane, in Edgbaston, months ago.

But this week, it emerged the long-awaited rebuild of Queen Elizabeth and Selly Oak hospitals into one new building was still awaiting Treasury approval and there was no guarantee it would still go ahead.

Monitor, the independent regulator, has also refused to endorse the Private Finance Initiative (PFI) development, which will cost taxpayers £1.75 billion over the next 35 years.

Mark Britnell, chief executive of University Hospital Trust which runs the hospitals, said current building work had only cleared the former car parks, where the new hospital would go, and created a new nearby multi-storey car park.

"The car park will be retained by us and we can afford to pay for it if the deal doesn't go ahead," said Mr Britnell.

"I can make no further comment until the treasury makes a decision."

Construction company Balfour Beatty, which is part of the consortium hoping to build the new hospital, is responsible for the current building work.

Balfour Beatty spokeswoman Marjorie Hooper said: "We have a separate contract with the trust to carry out advance works and a new car park at the site.

"The hope is that we will be ready to start building the new hospital at financial close. No building work has started yet on the new hospital."

Delays have been caused by ministers have doubts over the high repayment cost of PFI schemes.

Last year, the Birmingham Mail revealed even though it would cost £550 million to build the new hospital, trust bosses would pay out £1.75 billion - £50 million a year for the next 35 years - under the PFI deal for the building costs, maintenance and running of the building under the lease.

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