HC Deb 16 May 1990 vol 172 cc479-80W
Mr. Wigley

To ask the Secretary of State for Wales on how many occasions during the past five years his Department has granted temporary financial assistance to Gwynedd health authority; on what dates such assistance was granted; what sums were involved; and what requirements were placed on the health authority, prior to such assistance being agreed, with respect to its strategy for restoring financial balance in the medium term.

Mr. David Hunt

A loan of £1.3 million was provided to Gwynedd health authority by cash limit adjustment on 8 February 1988. The loan was made on the understanding that the authority had determined and was consulting on a plan for restoring its financial balance by the end of 1991–92; £0.5 million of this sum was provided for revenue purposes and £0.8 million for capital purposes in recognition of the authority's immediate cash flow problems. The whole of the loan was repaid by the authority the following year.

Mr. Wigley

To ask the Secretary of State for Wales whether, prior to 7 February, Gwynedd health authority had given any indication to the director of the National Health Service in Wales as to its likely overspend in either 1989–90 or 1990–91; and if he will make a statement.

Mr. David Hunt

The financial plan submitted by the Gwynedd health authority in April 1989 indicated that the authority would cover its projected expenditure in 1989–90 only through the achievement of significant savings from the service rationalisation measures set out in the action plan which it drew up in 1987–88 and the use of a small loan from another health authority. The financial plan also projected the need for substantial loans in 1990–91 to facilitate the capital expenditure necessary to achieve further service rationalisation measures and hence achieve its aim of restoring financial balance in the medium term.

At its annual review meeting with the executive committee of the health policy board in September 1989, the authority indicated that there had been a deterioration in its financial position since the submission of its financial plan, and that additional remedial action would be necessary if the authority were to contain its expenditure within its notified resources and that this action was to be discussed by the health authority at its meeting in November.

The income and expenditure monitoring form submitted by the health authority for the period ended 31 December, confirmed the slippage in the authority's planned programme of savings and indicated that this shortfall would be compensated by the transfer of funds from the authority's capital allocation to its revenue allocation.

Mr. Wigley

To ask the Secretary of State for Wales what steps he has taken following the information being given by Gwynedd health authority in February to his Department that it anticipated facing a £4 million shortfall in 1990–91; and if he will make a statement.

Mr. David Hunt

I refer the hon. Gentleman to the replies that I gave him on Thursday 10 May and Monday 14 May.

Mr. Wigley

To ask the Secretary of State for Wales who appointed the consultants currently investigating the financial difficulties of Gwynedd health authority.

Mr. David Hunt

I refer the hon. Gentleman to the answer given to him on 14 May at columns288–89.

Mr. Wigley

To ask the Secretary of State for Wales whether he has received any application from Gwynedd health authority to sell the Coed Mawr office site in Bangor; and if he will make a statement.

Mr. David Hunt

The health authority has delegated authority to sell the Coed Mawr office site.

Mr. Wigley

To ask the Secretary of State for Wales how many abortions have taken place in Gwynedd since Gwynedd health authority decided to curtail its family planning services; and what was the number for the comparable period preceding that decision.

Mr. David Hunt

I understand that Gwynedd health authority proposes to consider the outcome of the local consultation exercise on measures to reduce overspending, including a temporary reduction in family planning services, at its meeting on 21 May.