HC Deb 16 December 1991 vol 201 cc50-1W
Mr. Thurnham

To ask the Secretary of State for Health what restrictions exist on the freedom of a regional health authority, where a district health authority accepts an outside tender for architectural, ancillary or computer and training services at lower cost than the same services provided by the regional health authority, to penalise the district health authority financially by withholding other moneys or by continuing to charge for the overheads associated with the services concerned.

Mr. Dorrell

There are a wide variety of circumstances in which a regional health authority could reasonably withhold money from a district health authority or charge for overhead costs properly incurred for the benefit of districts within the region. A regional health authority would not, however, wish to penalise a district health authority for contracting out a service at lower cost. On the contrary, in line with the Government's policy as set out in "Competing for Quality", a regional health authority would wish to facilitate such developments.