The British Medical Association has condemned PFI hospitals as "high cost, low value" schemes, in a submission to MSPs.

The doctors' organisation said the NHS was unable to develop "high quality services for patients" in a cost-effective way through private finance, in a submission to Holyrood's Finance Committee which is to investigate the funding of capital projects.

Doctors across the UK have raised concerns of bed shortages, financial problems, poor quality and reduced levels of care as a result of PFI, according to BMA Scotland.

Its submission to the committee condemns the "high cost and low value" associated with these schemes. The BMA claims the Private Finance Initiative, later rebranded by Labour as Public Private Partnerships, limit the flexibility of the NHS to adapt to policy changes or new technologies. As well as construction costs, PFI/PPP cover maintenance over the period of the contract - often about 25 years.

The submission states: "BMA Scotland supports the Scottish Parliament Finance Committee in its review of the funding of capital investment projects in Scotland and would support a capital investment system in Scotland that enables the NHS to develop high quality services for patients in a cost-effective and sustainable manner. BMA Scotland does not believe that the current PFI arrangements provide this."

Dr Peter Terry, chairman of the BMA in Scotland, said the committee inquiry was a useful starting point in considering alternatives to PFI. "The BMA does not support the diversion of public sector funds for core clinical services to the private sector whose priority is profit rather than the delivery of high quality patient care," he said.

"The BMA is also interested to find out more about the SNP's policy manifesto proposal to introduce a system of Scottish Future Trusts."

Edinburgh Royal Infirmary and the new private prison planned for Addiewell in West Lothian were this week described by Justice Secretary Kenny MacAskill as a "rip-off" for taxpayers.

"The Scottish Futures Trust would provide lower cost borrowing opportunities and deliver best value for taxpayers," a Scottish Government spokesman said.

Current PFI/PPP contracts would not be affected and local authorities could choose between PFI/PPP and the Scottish Futures Trust for future projects.

12:35am today

By ROBBIE DINWOODIE, Chief Scottish Political Correspondent

© All rights reserved. Reproduction in whole or in part without permission is prohibited.

Reproduced with the permission of The Herald, Glasgow © 2007 Herald & Times Group