Treasury Secretary Andrew Smith has been challenged to pledge publicly and in writing that clinical services at Oxford’s hospitals – involving the jobs of hundreds of nurses and other professionals – will not be privatised as part of privately-funded developments involving the Churchill, the Nuffield Orthopaedic Centre, and the relocation of the Radcliffe Infirmary. All three hospital projects are due to be carried out under the controversial Private Finance Initiative (PFI).

A report in the latest Health Service Journal contrasts a promise by Mr Smith to former Oxfordshire Community Health Council chair Tom Fellows in January that "all the clinical staff – doctors, nurses, therapists and others – will continue to be employed directly by the Trust," with a statement from the Department of Health seven weeks later, declaring that there is "not necessarily any presumption" against private provision of clinical services.

John Lister, the Socialist Alliance candidate challenging Mr Smith for the Oxford East constituency, said:

He added: "We have reason to be fearful that another, potentially disastrous U-turn could be under way, one that could lead to key clinical services being privatised. New Labour only switched from opposition to full-scale support for PFI months before the last election. And Mr Smith of course is the minister who famously declared in opposition that "our air is not for sale" – only to join a cabinet that is privatising Air Traffic Control."

PHONE 0374-264112 (mob) (Copy of letter to Mr Smith FOLLOWS)

Andrew Smith MP

House of Commons

London SW1

March 12, 2001

Dear Andrew,

I write to seek clarification of yours and the government’s policy on the privatisation of NHS clinical services as part of PFI schemes, which as you know apply to three hospital projects in Oxford.

My query arises from the report in the current issue of the Health Service Journal (March 8, page 13). In that report you are quoted in correspondence with Tom Fellows from Oxfordshire CHC reasserting what has been the standard government position: that "all the clinical staff – doctors, nurses, therapists and others – will continue to be employed directly by the Trust." But the HSJ then goes on to quote a much more recent statement from the Department of Health that there is "not necessarily any presumption" against PFIs for clinical services.

As you will see, these two statements are diametrically opposed to each other, although both ostensibly reflect the policies of the same government of which you are a member. Which of them represents the policy that will apply to Oxford’s PFI-funded hospital schemes?

As you will know the Socialist Alliance, the health unions, the TUC, the BMA, and many others have serious disagreements with PFI, as a high-cost, poor value, inflexible way of funding the future needs of the NHS. We believe the best solution for health workers in Oxford and elsewhere would be for ministers to abandon PFI altogether, and revert to investing government capital in the long-term future of our most popular public service.

But in defending PFI the government has always insisted that clinical services would remain under the direct ownership and control of the NHS. I am therefore calling on you to give your immediate, unconditional, categorical assurance that clinical services in Oxford’s hospitals will not be parcelled out to private, profit-seeking companies or agencies under PFI.

Many health workers will recall that New Labour only switched from opposition to full-scale support for PFI months before the last election. Will you give a clear pledge that no further U-turn towards more wholesale privatisation of the NHS is now being contemplated by your cabinet colleagues?

I await your reply with interest

Yours sincerely