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Department of Health

Those are short-term issues. I appreciate that the slide cannot continue in acute hospitals and PCTs, and a line must be drawn to deal with those deficits, which should be dealt with in a relatively short period—obviously, on occasions, with transitional help. The big issue in north Staffordshire is the rebirth of the University Hospital of North Staffordshire—the fit for the future project. The project faces some paring down, which is in keeping with the move towards community health resources rather than relying on the acute trust. It is nevertheless vital that the project goes ahead, to reduce the glaring health inequalities in north Staffordshire and help to regenerate the local economy. Despite the hospital deficit, that project must go ahead, because any uncertainty will create real problems. It is important that the Department should consider transitional funding, if it is necessary to get the hospital off the ground. The locality needs a new hospital, because we have possibly the most dilapidated hospital buildings anywhere in the country, so replacing them is a priority. The lack of investment in hospitals in the past is demonstrated by the fact that we are stuck with such appalling buildings, which should be replaced quickly. I want the hospital to work much more closely with PCTs, the ambulance trust and community staff. The Secretary of State has pointed out that deficits generally occur in wealthier areas, which are frequently bailed out by more deprived areas. That is not the case in north Staffordshire, which has significant deficits, which must be sorted out, not only in the hospital but in the PCTs. I welcome the greater transparency that is now involved. In the past, Staffordshire has frequently bailed out Shropshire. It has all been done very much under wraps. The loan has of course eventually been repaid, although no interest has been paid. Now it is clear that my own Staffordshire Moorlands primary care trust will be borrowing money, but will be paying interest that the lender will receive. What is happening is clear for all to see.