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Public funds boost for hospital Public funds boost for hospital
(about 1 hour later)
The most expensive hospital to be built in Scotland will be funded by the Scottish Government.The most expensive hospital to be built in Scotland will be funded by the Scottish Government.
Minister Shona Robison said that £842m would be spent "completely redeveloping" the Southern General Hospital in Glasgow. Public Health Minister Shona Robison said that £842m would be spent "completely redeveloping" the Southern General Hospital in Glasgow.
It will incorporate a new state of the art children's hospital. The new building will incorporate a state of the art children's hospital.
NHS Greater Glasgow and Clyde will fund about a third of the cost of the project, but the bulk, £552m, will be provided by the Scottish Government.NHS Greater Glasgow and Clyde will fund about a third of the cost of the project, but the bulk, £552m, will be provided by the Scottish Government.
Ms Robison announced the funding details on Tuesday morning.
She said: "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 SNP administration has in the past criticised the use of Private Finance Initiatives (PFI) to fund public sector building projects, a policy followed by the previous Labour-Lib Dem coalition.
Under PFI, and its "public private partnership" (PPP) successor, a private sector consortium designs, builds and finances a health institution, which is then rented back to the health board, which is charged for the running costs.
Shona Robison announced the funding details
Alex Salmond had promised to introduce not-for-profit trusts as an alternative to PFI, but the SNP's manifesto made it clear that councils and other public bodies would be able to choose how to fund building projects - leaving private finance open as an option.
The Southern General project plans to deliver an adult hospital with 1,109 beds and a 240-bedded children's hospital by 2014.
The development would signal the end of acute services at Glasgow's Western Infirmary and the Royal Hospital for Sick Children at Yorkhill.
In-patient acute services would also be transferred from the city's Victoria Infirmary.
NHS Greater Glasgow and Clyde recommended public funding over private in its case to the Scottish Government.
Its chairman, Andrew Robertson, said the Scottish Government's approval of the project was "truly historic" for the NHS in Scotland.
"Our proposals for the new campus represent the largest investment in health services ever undertaken in Scotland," he added.
"It will see Glasgow become home to the largest, most advanced single NHS development in Scotland.
"Investment in the new hospitals and maternity unit, together with the new laboratory facility will transform the experience of healthcare for patients and staff alike."
'New life'
He also claimed the building programme would "breathe new life into Govan and the wider area".
"Without doubt the biggest single factor in the regeneration of the area is this development boosting wealth, business opportunities, local jobs plus transport and environmental improvements," he said.
Donald Sime, the health board's employee director, said the fact that the hospital would be publicly funded was "terrific news for both patients and NHS staff".
"The joint trades unions are delighted that the Scottish Government has agreed to fund this major hospital build by public procurement," he said.
"Other funding routes could have meant NHS staff tendering for the opportunity to provide services such as catering, cleaning and other support services.
"However, this confirmation of public funding now ensures that the new hospital campus will be run and managed by the full NHS team."
Glasgow City Council has already granted outline planning permission for the development.