TOM Hodgson is right in what he argues in his letter (HAS, Feb 20) about private finance initiative (PFI) spending.

From the political perspective, it is a demonstration that New Labour follows Conservative policies and that when we vote Labour it does not automatically lead to radical change.

The position we are in now with a budget deficit on account of rescuing the banks from their folly shows up the extra liability we face through following the PFI policy.

Only the private companies which have been involved have benefited because they have had to be paid back with interest, and the national exchequer has to face this at a time when the revenue is less than it would have been on account of the people put out of work and not able to pay tax.

I am delighted that the British Medical Association is campaigning against creeping commercialisation of the NHS (Echo, Feb 17).

It should have the Labour Party as its principal ally. The fact it does not is an indication of how the Labour movement needs to rediscover its moorings.

Geoffrey Bulmer, Billingham.