A HEALTH boss has defended the use of controversial "mortgage" schemes to build hospitals, such as those in Blackburn and Burnley.

Mike Fararr, chief executive of NHS North West, said the Private Finance Initiative was vital to get new buildings in place.

The scheme sees hospitals built with private cash and then paid back by the NHS, plus interest.

Mr Fararr said: "Without schemes such as PFI, there is now way that the NHS could afford this scale of development."

The PFI programme has been used to build the £113million Royal Blackburn Hospitals and the £30 million phase five extension at Burnley General.

A similar programme, the Local Improvement Finance Trust scheme, is used to build community buildings such as the new Darwen Health Centre and St Peter's Health Centre, Burnley.