HL Deb 14 January 2003 vol 643 cc33-42WA
Lord McColl of Dulwich

asked Her Majesty's Government:

If a National Health Service foundation trust was unable to satisfy the independent regulator that the proceeds from the disposal of an asset would not be used to further the trust's public interest mandate, what mechanism would be used to remove the proceeds from the trust. [HL665]

Lord Hunt of Kings Heath

An NHS foundation trust will be required to satisfy the independent regulator that proceeds from disposal of assets would be used to further its public interest mandate.

Lord McColl of Dulwich

asked Her Majesty's Government:

Whether a National Health Service foundation trust will be free to enter into complex financial instruments such as hedging contracts, swaps and other derivative products; and, if not, how any restrictions will be effected. [HL666]

Lord Hunt of Kings Heath

NHS foundation trusts will have freedom over the way they conduct their finances, subject to the requirements of their licence and their primary purpose of providing health services for the benefit of NHS patients and the community.

Lord McColl of Dulwich

asked Her Majesty's Government:

Whether the financial duties for National Health Service foundation trusts will include the requirement to achieve a rate of return on assets. [HL667]

Lord Hunt of Kings Heath

The financial duties of NHS foundation trusts will be set out in forthcoming legislation.

Lord McColl of Dulwich

asked Her Majesty's Government:

Whether a National Health Service foundation trust is required to charge standard tariffs for all of its activity; and, if so, how it can thereby achieve increases in the range and volume of services delivered to National Health Service patients, given that those services must also be charged at a standard tariff. [HL668]

Lord Hunt of Kings Heath

The position is set out in paragraphs 5.6–5.12 and 5.25–5.29 ofA Guide to NHS Foundation Trusts.

Lord McColl of Dulwich

asked Her Majesty's Government:

Whether a National Health Service foundation trust would be able to carry out any work for National Health Service patients without charge. [HL669]

Lord Hunt of Kings Heath

NHS foundation trusts will provide services that are free at the point of use according to clinical need, not the ability to pay.

Lord McColl of Dulwich

asked Her Majesty's Government:

Whether a National Health Service foundation trust will be free to invest surplus financial assets as it wishes. [HL670]

Lord Hunt of Kings Heath

The position is explained in paragraph 3.5 ofA Guide to NHS Foundation Trusts. Details will be set out in forthcoming legislation.

Lord Astor of Hever

asked Her Majesty's Government:

Whether National Health Service foundation trusts will be able to carry out work for private patients through the medium of (a) subsidiary companies or (b) public private partnership arrangements. [HL671]

Lord Hunt of Kings Heath

Subject to compliance with licence conditions explained in paragraph 3.14–3.15 ofA Guide to NHS Foundation Trusts, NHS foundation trusts will be able to carry out work for private patients through a range of corporate arrangements.

Lord Astor of Hever

asked Her Majesty's Government:

How the strict limits on the provision by National Health Service foundation hospitals of services to private patients as referred to in paragraph 3.4 of A Guide to NHS Foundation Trusts will be defined; and whether those limits will be fixed for all time or whether it would be possible for a National Health Service foundation hospital to apply for a revision to the limits. [HL672]

Lord Hunt of Kings Heath

The position is set out in paragraph 3.15 ofA Guide to NHS Foundation Trusts. The limit will not be subject to revision. Details will be included in forthcoming legislation.

Lord Astor of Hever

asked Her Majesty's Government:

Whether they have estimated the costs of setting up an independent regulator for National Health Service foundation trusts; and, if so, whether they will publish their estimates. [HL673]

Lord Hunt of Kings Heath

Costs will depend on the roles and responsibilities of the independent regulator, which will be set out in forthcoming legislation, and on the number of NHS foundation trusts.

Lord Astor of Hever

asked Her Majesty's Government:

Whether they propose that the independent regulator's decision on matters relating to National Health Service foundation trusts will be absolute or whether any appeal mechanisms will be set up. [HL674]

Lord Hunt of Kings Heath

Arrangements will be set out in forthcoming legislation.

Lord Astor of Hever

asked Her Majesty's Government:

In what ways the independent regulator for National Health Service foundation trusts will be independent of the Secretary of State for Health. [HL676]

Lord Hunt of Kings Heath

The independent regulator will not be subject to direction by the Secretary of State for Health.

Baroness Noakes

asked Her Majesty's Government:

Whether National Health Service foundation trusts will be classified to the public sector or the private sector in the national accounts. [HL679]

Lord Hunt of Kings Heath

This is a matter for the Office for National Statistics.

Baroness Noakes

asked Her Majesty's Government:

What criteria they use for determining whether an organisation is a part of the National Health Service. [HL681]

Lord Hunt of Kings Heath

NHS services are provided by a mix of public and private sector organisations. The service provided for NHS patients must be free at the point of use and provided according to clinical need, not ability to pay.

Baroness Noakes

asked Her Majesty's Government:

Whether it is possible for a National Health Service foundation trust to be classified to the private sector in the national accounts and also be treated as a part of the National Health Service; and, if so, whether any other private sector organisations could be treated as part of the National Health Service. [HL682]

Lord Hunt of Kings Heath

Classification in the national accounts is a matter for the Office for National Statistics.

Baroness Noakes

asked Her Majesty's Government:

When they will publish the prudential code referred to in paragraph 5.17 of A Guide to NHS Foundation Trusts. [HL683]

Lord Hunt of Kings Heath

The position is set out in paragraph 3.17 ofA Guide to NHS Foundation Trusts.

Earl Howe

asked Her Majesty's Government:

Whether they will explain what suitable comfort means in relation to private finance initiative schemes for National Health Service foundation trusts as mentioned in paragraph 5.22 of A Guide to NHS Foundation Trusts. [HL688]

Lord Hunt of Kings Heath

For NHS trusts with existing PFI projects, suitable comfort means that legislation introducing NHS foundation trusts must not affect any new NHS foundation trust's ability to meet its obligations under its PFI contract. Legislation will also ensure that NHS foundation trusts, once created, will be able to sponsor their own PFI projects using the same legislative framework as NHS trusts.

Earl Howe

asked Her Majesty's Government:

What would be the consequences for a National Health Service foundation trust of its borrowing limit being reduced as part of its annual review if the reduced limit exceeded (a) its actual borrowings at that time; or (b) its expected borrowings in the light of existing commitments to revenue or capital expenditure. [HL690]

Lord Hunt of Kings Heath

If the reduced limit exceeded its actual or expected borrowing then the NHS foundation trust would still be within its prudential borrowing limit.

Earl Howe

asked Her Majesty's Government:

Whether they intend that any borrowings by a National Health Service foundation trust from the private sector could be guaranteed by the Secretary of State for Health, strategic health authorities, primary care trusts or any other body within the National Health Service. [HL691]

Lord Hunt of Kings Heath

The regime for managing financial failure in NHS foundation trusts will safeguard the Secretary of State's overriding priority—that NHS patients continue to have access to the healthcare they need, free at the point of delivery. The regime will not underwrite institutions that have failed to deliver under the terms of their service agreements and/or licence.

Earl Howe

asked Her Majesty's Government:

Whether the Government will act as the lender of last resort for National Health Service foundation trusts if they are unable to borrow from private sector sources. [HL692]

Lord Hunt of Kings Heath

The arrangements for borrowing by NHS foundation trusts are set out in paragraph 5.13–5.16 ofA Guide to NHS Foundation Trusts.

Earl Howe

asked Her Majesty's Government:

Why National Health Service foundation trusts will not be allowed to use their regulated assets as security for borrowing. [HL693]

Lord Hunt of Kings Heath

NHS foundation trusts will not be allowed to use their regulated assets as security against borrowing to ensure their continuity of essential services in the event of financial failure.

Baroness Noakes

asked Her Majesty's Government:

Whether local authorities will be able to appoint members to the board of governors of a National Health Service foundation trust. [HL728]

Lord Hunt of Kings Heath

The constitution of an NHS foundation trust will set out the arrangements for appointing representatives of partner organisations to the board of governors. The minimum requirements are set out in paragraph 2.17 ofA Guide to NHS Foundation Trusts. As explained in paragraphs 2.17–2.23 there will be flexibility for each NHS foundation trust to decide whether to include other partner organisations, including local authority social service departments.

Baroness Noakes

asked Her Majesty's Government:

How they propose to ensure that the board of governors of a National Health Service foundation trust is not dominated by a particular group of members of sectional interest. [HL729]

Lord Hunt of Kings Heath

Yes, paragraphs 2.18–2.28 ofA Guide to NHS Foundation Trusts set out clearly that NHS foundation trusts will need to establish a properly representative public and patient membership base and set up a board of governors that is balanced and representative of the whole membership community.

Baroness Noakes

asked Her Majesty's Government:

Who will determine whether a chair or a non-executive director of a management board of a National Health Service foundation trust meets criteria laid down by the independent regulator; and what will happen if a person is elected a chair or non-executive director but does not meet those criteria. [HL730]

Lord Hunt of Kings Heath

An NHS foundation trust will set its own criteria for elections of these individuals, taking into account guidance from the independent regulator and statutory requirements. A person who does not meet the NHS foundation trust's criteria would not be eligible for election.

Baroness Noakes

asked Her Majesty's Government:

What will be the precise legal form of a National Health Service foundation trust. [HL731]

Lord Hunt of Kings Heath

NHS foundation trusts will have an organisational structure defined in law which will make them work for the public benefit. The precise form will be set out in forthcoming legislation.

Baroness Noakes

asked Her Majesty's Government:

What will be the personal legal responsibilities and duties of individuals involved in National Health Service foundation trusts as:

  1. (a) members of a board of governors;
  2. (b) chair of a board of governors;
  3. (c) chair of a management board;
  4. (d) non-executive director of a management board; and
  5. (e) executive member of a managment board. [HL732]

Lord Hunt of Kings Heath

The statutory responsibilities of these individuals will be set out in forthcoming legislation. Personal legal obligations may also arise from the terms of the constitution of a particular NHS foundation trust and any contract of employment that an individual has with the NHS foundation trust.

Baroness Noakes

asked Her Majesty's Government:

What resources will be available to boards of governors of National Health Service foundation hospitals to enable them to carry out their functions. [HL733]

Lord Hunt of Kings Heath

Subject to legislation, this will be a matter for the NHS foundation trust to determine.

Lord Astor of Hever

asked Her Majesty's Government:

Whether National Health Service foundation trusts will be able to transfer their existing assets as part of a private finance initiative transaction. [HL734]

Lord Hunt of Kings Heath

NHS foundation trusts will continue to be able to procure capital schemes using the PFI process, subject to the same degree of oversight as applies under current arrangements.

Lord Astor of Hever

asked Her Majesty's Government:

Whether they have made any assessment of the willingness of the private sector to lend money for capital projects to National Health Service foundation trusts in the absence of security on the related assets; and, if so, whether they will publish that assessment. [HL735]

Lord Hunt of Kings Heath

There has been widespread consultation with the financial community throughout the development of the NHS foundation trust policy. Lenders are not looking to take security over assets crucial to the provision of essential public services. NHS foundation trusts will borrow primarily on the strength of their projected cash flows.

Lord Astor of Hever

asked Her Majesty's Government:

Whether the assets that are transferred to a National Health Service foundation trust when it is established will be transferred at the amount shown in the accounts of the National Health Service trust or at a contemporaneous valuation. [HL736]

Lord Hunt of Kings Heath

Assets will be transferred at the value shown in the accounts of the predecessor NHS trust.

Lord Astor of Hever

asked Her Majesty's Government:

How they will determine what debt of a National Health Service trust is associated with particular assets that are transferred to a National Health Service foundation trust when it is established. [HL737]

Lord Hunt of Kings Heath

The intention is that on establishment an NHS foundation trust will inherit the balance sheet of its predecessor NHS trust. Assets will be transferred at the value shown in the accounts of the NHS trust.

Lord Astor of Hever

asked Her Majesty's Government:

Whether they will explain in legal terms what is meant by the creation of "a legal lock on the assets of National Health Service Foundation Trusts" as stated by the Secretary of State for Health on 11 December (HC Deb, col. 272). [HL738]

Lord Hunt of Kings Heath

NHS foundation trusts will be prevented from selling and distributing assets necessary for the continued provision of essential services.

Lord Astor of Hever

asked Her Majesty's Government:

What is meant by "public interest mandate" in paragraph 5.24 of A Guide to NHS Foundation Trusts. [HL739]

Lord Hunt of Kings Heath

Public interest mandate in this context refers to the public interest duties that will be enshrined in the licence of each NHS foundation trust that are described in paragraph 3.5 ofA Guide to NHS Foundation Trusts.

Earl Howe

asked Her Majesty's Government:

What process will be used to determine the financial and other resources available to the independent regulator for National Health Service foundation hospitals. [HL742]

Lord Hunt of Kings Heath

Provision for the establishment of the independent regulator, including funding, will be set out in forthcoming legislation.

Earl Howe

asked Her Majesty's Government:

What process will be used for the appointment of the independent regulator for National Health Service foundation hospitals. [HL743]

Lord Hunt of Kings Heath

The position is explained in paragraph 3.28 ofA Guide to NHS Foundation Trusts. Details will be included in forthcoming legislation.

Earl Howe

asked Her Majesty's Government:

Whether membership of a National Health Service foundation trust will be available to people who live in Scotland and Wales. [HL744]

Lord Hunt of Kings Heath

Subject to legislation, membership will be open to residents in Scotland and Wales if they meet the eligibility criteria set by an NHS foundation trust.

Earl Howe

asked Her Majesty's Government:

Whether there will be any age criteria for membership of a National Health Service foundation trust. [HL745]

Lord Hunt of Kings Heath

The criteria for membership are set out in paragraph 2.6 ofA Guide to NHS Foundation Trusts.

Earl Howe

asked Her Majesty's Government:

Whether they have calculated the potential membership communities for National Health Service foundation hospitals in London and other large urban areas; and, if so, whether they will publish those estimates. [HL746]

Lord Hunt of Kings Heath

The membership community will vary across NHS foundation trusts, and it will be up to each applicant to set out boundaries on the basis of minimum criteria to be set out in forthcoming legislation.

Earl Howe

asked Her Majesty's Government:

Whether they have estimated the costs for a National Health Service foundation trust of setting up and administering on an ongoing basis a membership register on different assumptions about the size of membership communities; and, if so, whether they will publish those estimates. [HL747]

Lord Hunt of Kings Heath

The Department of Health will work with second stage applicants to prepare for formal establishment, including practical support to develop the new governance arrangements.

Baroness Noakes

asked Her Majesty's Government:

Whether foreign nationals may become members of National Health Service foundation trusts. [HL780]

Lord Hunt of Kings Heath

Subject to legislation, membership will be open to anyone who meets the criteria set by an NHS foundation trust (see paragraph 2.6 ofA Guide to NHS Foundation Trusts).

Baroness Noakes

asked Her Majesty's Government:

Further to the statement by Lord Hunt of Kings Heath on 11 December (HL Deb, col. 268), what is meant by National Health Service foundation trusts "poaching" staff; who would decide whether "poaching" had taken place; and what sanctions would be exercised and by whom in the event that "poaching" were deemed to have taken place. [HL781]

Lord Hunt of Kings Heath

Like NHS trusts, NHS foundation trusts will be bound by a statutory duty of partnership. Unfairly competing for staff in the local area could potentially be regarded as a breach of the duty and therefore subject to intervention by the independent regulator.

Baroness Noakes

asked Her Majesty's Government:

Whether boards of governors of National Health Service foundation trusts will be able to take independent advice on matters which include the requirement to advise the management board on the trust's forward plans as set out in paragraph 1.26 of A Guide to NHS Foundation Trusts. [HL783]

Lord Hunt of Kings Heath

It is for the board of governors of each NHS foundation trust to determine what advice it requires in order to carry out its responsibilities. Any provison for allocation of resources to the board of governors will be determined by the NHS foundation trust's constitution.

Baroness Noakes

asked Her Majesty's Government:

Whether boards of governors of a National Health Service foundation trust will be able to remove any of the members of a management board; and, if so, on what criteria and through what process. [HL784]

Lord Hunt of Kings Heath

New legislation will set out the provisions for both appointment and dismissal of members of the management board.

Baroness Noakes

asked Her Majesty's Government:

What is the council referred to in paragraph 2.22 of A Guide to NHS Foundation Trusts. [HL785]

Lord Hunt of Kings Heath

The term "council" should read "board of governors".

NHS: Patient Environment

Lord Williams of Elvel

asked Her Majesty's Government:

What plans they have to improve the patient environment. [HL1047]

Lord Hunt of Kings Heath

In our 1997 manifesto, we promised to end mixed-sex accommodation in National Health Service hospitals. In February 1998, we set a target for the achievement of three objectives which were designed to deliver separate sleeping areas, separate toilet and washing facilities and safe facilities for the mentally ill. Our target was that 95 per cent of trusts would meet these new standards by December 2002.

We have exceeded the target to provide good standards of privacy and dignity, ensuring single-sex sleeping accommodation and robust operational policies which protect patients' privacy and dignity in 98 per cent of NHS trusts.

We have met the target set to ensure the safety of people who are mentally ill—95 per cent of NHS trusts meet additional criteria set for this patient group, offering for example day rooms which are "off limits" to both patients and visitors of the opposite sex.

The target to provide separate toilet and washing facilities for men and women will be met by the end of March. Progress to date means that 93 per cent of NHS trusts provide properly segregated bathroom and toilet facilities for men and women. A further two per cent of NHS trusts have works under way to deliver the required standard, affecting just 32 wards, which will be completed by the end of March.

Over 98 per cent of NHS wards meet our guidelines. As there are approximately 10,000 wards currently in use across the NHS, this is a significant achievement. New hospitals and hospital facilities currently being built will bring the remaining wards to the necessary standard.

This has been a particularly challenging target, which the NHS has met with enthusiasm and fervour. Meeting the target has taken time, energy and commitment from a wide range of professionals. The extremely high level of compliance achieved is a testament to their hard work and commitment to the interests of NHS patients.