New £842m Southern General will not waste money on private finance 

Glasgow SNP MSP  Bashir Ahmad  has welcomed confirmation that the new Southern General Hospital  will be built using public money, not waste millions of pounds through the  discredited private finance initiative .

Mr Ahmad received  confirmation  that the Scottish Government has now granted approval for the New Southern Hospitals Project in Glasgow at a total capital cost of the project is £842 million  in a parliamentary question released today. The First Minister announced the plans at the STUC Conference in Inverness.

The new hospital will completely redevelop the Southern General Hospital site and also ensure a new state of the art Children's Hospital for the West of Scotland.

Commenting on the news Mr Ahmad said: "This is great news for Glasgow and the West of Scotland. The new Southern General  will clearly make a significant contribution to the provision of health care for the people of Glasgow and the children of the West of Scotland.

"It is also good news to hear that it will be funded by the less expensive public finance system rather than through the wasteful  Private Finance Initiative  which sees private companies making huge profits from our public services .

"Along with a council tax freeze, reduced prescription charges, no graduate endowment and increased payments for free personal and nursing care, this announcement shows the SNP Government is delivering for Glasgow and Scotland."

Notes:

Mr Ahmad's Parliamentary Question and Answer read:

Bashir Ahmad (Glasgow) (SNP): To ask the Scottish Executive  whether it has now considered the outline business case for the South Glasgow Hospital Project, previously approved by NHS Greater Glasgow and Clyde on 19 February 2008. (S3W-12137)

Shona Robison: I am pleased confirm that following a rigorous review of the proposal The Scottish Government has now granted approval of the Outline Business Case for the New Southern Hospitals Project in Glasgow. The proposed investment will completely redevelop the Southern General Hospital and would also provide a new state of the art Children's Hospital for the West of Scotland.

The total capital cost of the project is £842m. In accordance with the preferred option in the Outline Business Case the Scottish Government has agreed that project will be funded through the use of public capital. In considering the options for funding this project The Scottish Government has sought to ensure that the project is deliverable, affordable, sustainable and represents best value for money for the taxpayer.

The sources of funding are £270 million from NHS Greater Glasgow and Clyde allocations and capital receipts, £20 million from locally held endowments with the balance of £552 million being provided by the Scottish Government.