HC Deb 13 June 1995 vol 261 cc430-1W
Mr. Spearing

To ask the Secretary of State for Health if she will state the defined interest or repayment terms on the interest bearing debt and public dividend capital of(a) Newham Healthcare NHS Trust and (b) the Royal Hospitals of St. Bartholomew's, Royal London, and London Chest Hospital Trust together with their respective payments for the years 1975–76 in respect of (i) 6 per cent. of their origination capital debt, (ii) interest and repayment of their interest-bearing debt and (iii) public dividend capital, stating the purpose of each type of payment. [28380]

Mr. Sackville

The two national health service trusts in question were established as at 1 April 1994. Information is therefore only available for 1994–95.

An NHS trust's originating capital debt is divided between a loan—on which interest shall be paid—and public dividend capital. The debt is divided on a 50:50 basis and the interest-bearing element is repayable in equal instalments over 25 years at a fixed rate of interest. The interest rate applicable to NHS trusts established on 1 April 1994 is 8.125 per cent. The actual value of the originating debt of the trusts in question is given in Statutory Instrument 1995 No. 407, dated 20 February 1995.

My right hon. Friend the Secretary of State may determine the dividend which is to be payable at any time on the public dividend capital element of the trust's originating debt.

The NHS executive's records show that the following payments were made in 1994–95.

Newham £ Royal London hospitals £
Principal 377,773 1,649,000
Interest 1,469,530 6,409,556
Dividend 720,472 2,842,485

These figures are provisional and subject to audit.

Contract income received by a trust will include a 6 per cent. return on its relevant net assets from which the trust remunerates its debt. The actual return achieved by trusts in 1994–95 will be reported in their annual accounts which will be available following audit no later than 30 September.