Health Authority Funding (Hansard, 10 July 1990)

§ Mr. Barry Jones
To ask the Secretary of State for Wales what measures he will take to improve the financial basis of Gwynedd area health authority.

§ Mr. Grist
I refer the hon. Gentleman to the reply which I gave the hon. Member for Caernarfon (Mr. Wigley) on 4 July 1990, at columns578–79.

§ Mr. Barry Jones
To ask the Secretary of State for Wales if he will visit(a) Clwyd, (b) Gwent, (c) Mid-Glamorgan, (d) West Glamorgan, (e) Powys, (f) Gwynedd, (g) South Glamorgan, (h) Dyfed and (i) South Pembrokeshire area health authorities to discuss problems associated with underfunding.

§ Mr. Grist
My right hon. Friend hopes to visit each of the district health authorities in Wales over the coming months and will expect to hear, at first hand, how the authorities are managing the record levels of resource provision in real terms which have been made available to them under this Government.

§ Mr. Barry Jones
To ask the Secretary of State for Wales if he will institute a reassessment of the funding of health authorities in Wales.

§ Mr. Grist
Health authorities in Wales have received a revenue cash increase averaging 7.8 per cent. over last year —1989–90. This increase together with the resources which authorities are expected to unlock by cash improvement programmes and income generation schemes totalling a further 1.3 per cent. should be sufficient to meet anticipated inflation and provide for further service developments. Provision for the next year will be considered in the course of this year's public expenditure survey. However the NHS and Community Care Act 1990 requires changes in the way health services are to be provided and funded in future. This has necessitated a review of the resource allocation methodology to enable health authorities to be funded as procurers of services rather than, as at present, as providers of services. At the same time the method of allocating capital is being reviewed to take account of the new arrangements. Consultation on the proposals for change will take place over the next six months. The new arrangements will be phased in from next year for revenue and from 1992–93 for capital.