ERI builder's refusal to pass on tax cut rakes in extra £30k

Published on Saturday 21 February 2009 09:29

THE private firm that built the ERI pocketed almost £30,000 by not passing on VAT cuts to those parking at the hospital.

It is understood Consort has made an extra 29,000 since the cut at the start of December by not adjusting the car park charges.

It argued at the time that it would be too expensive to reset the machines to take into account the cheaper price of parking, estimating it would cost 70,000.

Now NHS Lothian has forced Consort into extending the time people can park there to compensate for the reduction from 17.5 per cent to 15 per cent. It is understood the company won't be refunding the extra cash it made.

NHS Lothian bosses are already furious that the ERI is now one of the few hospitals in Scotland where parking is not free. Consort wanted 14.5 million from them to remove charges, leaving it the only hospital in the Lothians where patients and visitors still have to pay to bring their car.

The revelation that the VAT cut was not being passed on has enraged them further.

One ERI insider said: "Consort has walked away with thousands by refusing to pay to have these changed, and said if they changed it would be the taxpayer who has to pay for it."

Parking at the ERI can cost up to 7 a day, or 1.20 an hour, but with the decrease, that would have been around 20p cheaper. And when the hundreds of people who park there every day are considered, the saving is immense.

Dr Jean Turner, director of the Scotland Patients Association, said: "This is making profit out of patients. If there was a VAT change that meant an increase, someone would be out the next day altering these machines."

No-one from Consort was available for comment.

Facilities director at NHS Lothian, John Jack, said: "Consort has agreed to increase the time period to reflect the VAT changes. Therefore patients and visitors can park longer for the same fee."