CAMPAIGNERS have given a cautious welcome to the announcement of a £1.5bn bailout fund that should stave off threats to debt-ridden hospitals such as Whiston and St Helens.

The Government has revealed the fund will be accessible to seven financially troubled NHS hospital trusts, following historic private finance initiative (PFI) arrangements.

Among those are Whiston and St Helens hospitals, which were rebuilt under a £350m private finance initiative, to which annual repayments have to be made.

Funding for what is effectively a mortgage (Treasury figures point to £42m having to be repaid on 2012/2013 - far greater than previously reported) was supposed to come from primary care trusts.

But they are being axed under the reorganisation of the NHS.

It left a funding black hole in - and leaked documents revealed by the Star last year raised fears the hospitals could be taken over by a private contractor or be forced to merge with another, such as Warrington, to fill it.

This sparked a campaign, fronted by unions, the community and Labour politicians, which amassed 33,000 signatures opposing any step towards privatisation.

Anthony Lockhart, of the local Unison branch said: “Hopefully the threat of a contractor coming in to manage the NHS hospital is no longer there.

“I think the campaign played a big part – thanks to the efforts of the community. We owe a big thank you to them – they put the issue on the radar.”

News of the bailout fund has received a cautious welcome from St Helens’ Labour MPs, who are seeking further clarity about the agreement.

Dave Watts and Shaun Woodward regard the local hospitals – which created world class facilities – as one of the last Labour’s government most significant achievements locally.

The coalition, however, laid the blame for the funding crisis at the previous Government’s door.

It said that without this funding, the services provided at the hospitals will be put at severe risk.

The Department of Health has said the hospital trusts must meet certain criteria if they are to gain access to the funding.

A statement read: “Their problems must be exceptional and beyond those faced by other organisations.

“They must be able to show that their problems are historic and they have a clear plan to manage their resources in the future and they must demonstrate that they are delivering high quality services, including low waiting times.

“If they can satisfy the tests they will be eligible for the funding over 25 years.”

Health Secretary Andrew Lansley said the Government was tackling financial problems within the NHS locally that were the result of historic PFI agreements. He said these were badly negotiated by Labour and had left a “debt mess”.

Lansley added: "In the past, local Trusts have received extra funding on the quiet to avoid embarrassment.

"We have already signalled that we are determined to end these backroom deals by bringing greater transparency and openness to the process.

“We need to balance the accountability of the NHS at local level to live within its means on one hand, with recognising that there is a legacy of debt for some Trusts with PFI schemes.

“And we need to be certain those NHS Trusts that face historic financial problems are not taking their eye off the most important issue of all – maintaining and improving their frontline patient care.”

St Helens and Knowsley Hospitals NHS Trust said it was “pleased” to learn the Government will make money available.

Meanwhile, Woodward, the St Helens South and Whiston MP, said: “The news over the weekend that additional money would be made available to help St Helens hospitals is of course welcome.

“Unfortunately because there is no detail as to how much money and also any conditions which may have to be met further, it is prudent to remain cautious until the facts have been made clear.

“I have written to the Health Secretary asking for detail and clarification and I hope for a speedy response.”