HEALTH Secretary Andrew Lansley insisted the use of PFI private cash to build the new £451m Royal Liverpool Hospital posed no risk – despite claiming it was pushing 60 other hospitals to "the brink of financial collapse".

Interviewed by the Daily Post, Mr Lansley sought to calm fears that the controversial Private Finance Initiative (PFI) would impose huge repayments for decades to come – threatening patient care.

Speaking at the Manchester conference, the Health Secretary said he was confident that health chiefs at the Royal had learned the lessons from Labour's failures on PFI.

In particular, the proposal – to replace the current, ageing 1970s-built hospital once described as "like a little bit of Eastern Europe" – would avoid long-term expensive maintenance contracts.

Mr Lansley said: "I'm going ahead with the Royal Liverpool because, as with other PFIs that are currently out to tender, we are applying new criteria to PFI to ensure we deliver value for money.

"There are a range of issues for PFI projects to consider but, from my conversations with the Royal, they have recognised the failings of other PFI projects in the past.

"Their intention is not to tie themselves to the same kind of long-term commitment to hard and soft maintenance contracts that have undermined the value for money of many PFI projects in past – so they are in a good place."