HC Deb 18 July 1983 vol 46 cc6-7
6. Mr. Ron Davies

asked the Secretary of State for Wales what is to be the percentage difference between 1983–84 and 1984–85 in the centrally funded capital finance allocation for the hospital building programme for the Mid-Glamorgan and Gwent area health authorities.

Mr. Wyn Roberts

As the capital allocations for the hospital building programme for the 1984–85 financial year have yet to be determined, no comparison can be made.

Mr. Davies

Is the Minister aware that five out of the eight remaining programmes in the 1966 hospital building programme for Wales lie within the east Glamorgan and Gwent area? Will sufficient weighting be given to the Mid-Glamorgan and Gwent area health authorities to allow them to complete the hospital building prograrmne identified in the 1966 plan for Wales? When will finance be available for the construction of a new district general hospital to serve the area of east Glamorgan and Gwent?

Mr. Roberts

I ask the hon. Gentleman to look again at and not necessarily accept the information that he has already received about the schemes that remain to be completed under the 1966 plan.

With regard to the west Gwent hospital, it is for the health authority in the first instance to establish the need for such a hospital and its place in its priorities. Gwent health authority recently announced its intention to begin preliminary work on an appraisal of the need for that hospital. The proposed change in financial arrangements due to take place next year does not affect the moneys available for capital building. The new arrangements, with less involvement by the Government, are generally welcomed by the health authorities.

Mr. Abse

Does that reply mean that provided the need is established, the rearrangement of capital for the Health Service in Wales will in no circumstances result in the intended hospital at Panteg in West Monmouthshire not coming into existence?

Secondly, does that reply mean that there is no question of any interference whatsoever in the completion of the Royal Gwent hospital? As that has nothing to do with the establishment of need, but is going on now, should not completion be brought about as quickly as possible?

Mr. Roberts

Treasury approval was given last week for the necessary spending on phase 6 of the Royal Gwent hospital.

With regard to the hon. Gentleman's first point, it is necessary to establish the need for a hospital and for the authority to decide what priority it will give to whatever development is proposed. The change in the financial arrangements proposed for next year does not necessarily mean a decrease in the moneys available for capital spending in Wales.

Mr. Rogers

As the Minister is looking at the preparatory work for appraising the need for a hospital in east Wales and considering the implications of the Chancellor of the Exchequer's cuts in the Health Service without knowing the figure on which he will start—at least, he is not prepared to divulge it—will he go a little further in his star gazing and give the House the basis of the formula on which he will assess the new grants to district health authorities in relation to the amounts that will be available to them for capital and revenue expenditure? How will that formula be arrived at? Will he abolish the old system—[Interruption.]

Mr. Speaker

Order. The hon. Gentleman should ask only one question.

Mr. Roberts

It may help if I explain the present position. Under the present arrangements the money available for capital development is top sliced by the Department to pay for major schemes and the residue is allocated to health authorities for their more minor schemes. From next April it is proposed that new major schemes will not be top sliced, but schemes already in the all-Wales programme's regional services will. As the all-Wales commitments run out, the proportion of funding going to the health authorities will increase. The Department's approval will still be required for schemes costing more than £2 million and Treasury approval will be needed for those costing more than £3 million. I hope that the hon. Gentleman finds that helpful.