§ Mr. David Youngasked the Secretary of State for Social Services (1) if he will ensure that agreed schemes due to start in the next financial year will not be allowed to slip back as a result of his recent letter to health authorities; and if he will make a statement;
2. whether health regions which have agreed provisional arrangements for capital schemes with revenue consequences already in the programme will be allowed to go ahead in spite of his recent letter; and if he will make a statement.
§ Mr. Kenneth ClarkeThe letter to regional health authorities points out that plans for development of services must be realistic. In particular, it makes it clear that major hospital projects will be approved only if clear provision has been made for the necessary resources to open the hospital when it is completed. This means that when health authorities wish to enter into contracts for schemes which cost more to run than facilities they replace, they must demonstrate that they will be able to meet the revenue cost and to bring the new facilities fully into use. The letter instructs authorities to be prudent for the time being. They would be wise to plan within the provisional resource allocations they have been given until long term resource assumptions are issued.