A UNION has said it is ‘disgraceful’ payments made for Royal Blackburn Hospital through a PFI agreement were diverted into an offshore 'tax haven'.

Profits from private finance initiative schemes were sent legally to Guernsey-based investment firm HICL, which was set up with the help of HSBC.

HICL, previously known as HSBC Infrastructure Company Limited, has a group investment portfolio that includes the hospital.

In six months last year the company made more than £38m profit from its 33 PFI schemes and paid £100,000 in UK tax, equating to less than half of one per cent of the profits, according to a BBC investigation.

HICL said it was subject to UK tax laws, and that the profits had been paid to mostly UK shareholders. HSBC said it set up the scheme to give people a chance to invest in PFI projects.

But Unison branded the move a 'disgrace', and said the Government was to blame.

Tim Ellis, UNISON regional health officer for East Lancashire, said: “This is an absolute disgrace.

“East Lancashire Hospitals is having to cut 1,000 staff, including doctors, nurses, health care assistants, physios and diagnostics, while the Government continues to allow these companies to charge credit card rates of interest on PFI schemes to the NHS.

“At the same time the Government allows these companies to massively tax avoid and not pay into the public purse and thereby cut our NHS and other public services.”

He said the hospital trust had no control over where its payments were sent.

Consort Healthcare oversaw the £113million project to build the hospital extension.

It is responsible for repairs and running its car park, which brings in around half a million pounds a year from the public and staff.

Balfour Beatty, which owns Consort, and HSBC Infrastructure Fund Management, both had a 50 per cent shareholding in the project.

East Lancashire Hospitals is tied into a 38-year contract with Consort that will see it pay back an estimated £680million in interest.

Lynn Wissett, the trust’s deputy chief executive, said: “There is no guidance to suggest that renegotiation of long-term contractual commitments is possible anywhere in the NHS.”

HICL and HSBC were unavailable for comment.