HC Deb 03 March 1971 vol 812 cc1853-5

10.22 p.m.

The Under-Secretary of State for Health and Social Security (Mr. Michael Alison)

I beg to move, That the General Practice Finance Corporation (Increase of Borrowing Powers) Order, 1971, a draft of which was laid before this House on 8th February, be approved. The General Practice Finance Corporation was established by the National Health Service Act, 1966, for the purpose of making loans to National Health Service general medical practitioners for providing or improving their practice premises. Section 6(3) of the Act laid down a limit of £10 million on the aggregate of the principal borrowed by the Corporation, but also provided for the limit to be raised by Order to not more than £25 million.

The Corporation is empowered to raise finance by issuing stock and by temporary borrowing, both of which are guaranteed by the Treasury. Since it began business in May, 1967, the Corporation has issued stock amounting to £6½ million, all of which has been placed with the National Debt Office. It is also authorised to borrow temporarily up to £1½ million. It is already, therefore, effectively committed for a total of £8 million.

The Corporation expects to make an issue of stock within the next few months and further stock issues are likely to be necessary in the foreseeable future, so that the £10 million limit has become too restrictive. The purpose of this Order is to increase the Corporation's borrowing limit to £18 million to enable it to raise sufficient finance to meet the demand for its services.

The raising of the limit does not automatically enable the Corporation to increase its borrowing. The conditions relating to the issue and redemption of stock are subject to approval by my right hon. Friends the Secretaries of State for Social Services and for Scotland and by the Treasury, who have therefore to be consulted each time the Corporation wishes to increase its borrowing.

It gives me great pleasure to move this Order, as the need for it is a sign of the success of the Corporation in fulfilling the purpose for which it was set up. I am sure that hon. Members will wish to join me in expressing thanks to the members of the Corporation, whose valuable services have made this success possible.

10.27 p.m.

Dr. Shirley Summerskill (Halifax)

The Order is indeed welcome to my hon. Friends because it is evidence that the General Practice Finance Corporation is a success and has good prospects for the future.

The importance of the general practitioner as the backbone of the National Health Service is now generally accepted. He is the first person a patient goes to for help, he is approachable and he is not part of an institution. The fact that general practitioners have used these loans to make their premises more attractive and efficient is an indication that they are no longer content to put up with old-fashioned and out-of-date conditions, that they are modernising and adapting their premises and that they are even obtaining loans for new purpose-built premises.

It would be interesting to know whether younger practitioners are applying for these loans. The Corporations Annual Report for 1969–70 points out that of the 348 loans taken up, 136 were for the South-East of England, with other regions having 34 or less. The whole of Wales had only 16 and the whole of Scotland only 19. This discrepancy between the regions is serious in that general practitioners seem to be setting up in the South-East to the neglect of the rest of Britain.

It is said that they settle near to where they are trained, and the predominence of medical schools in the South-East may account for this huge number of loans being taken up in the South-East. I hope that the Government will consider the setting up of medical schools in the rest of the country, and preferably near to industrial towns, especially in the North. My hon. Friends have always encouraged the development of health centres. Of the total of 348 loans, 103 were for single-handed practices, which does not indicate a large enough desire among general practitioners to come together in groups or health centres. However, a smaller number applied for single-handed practice loans than in the previous year, and it is significant that there were 131 loans for practices of three or more doctors.

I have pleasure, on behalf of my hon. Friends, in welcoming the Order.

Question put and agreed to.

Resolved, That the General Practice Finance Corporation (Increase of Borrowing Powers) Order, 1971, a draft of which was laid before this House on 8th February, be approved.