HL Deb 06 October 2003 vol 653 cc47-8WA
Baroness

Noakes asked Her Majesty's Government:

Whether they will publish the formula for determining National Health Service foundation trust borrowing referred to in the Health Journal on 11 September. [HL4478]

Baroness Andrews

Subject to parliamentary approval, the Health and Social Care (Community Health and Standards) Bill provides for the Independent Regulator for NHS Foundation Trusts to make a code for determining the limit of borrowing by each NHS foundation trust, having regard to generally accepted principles used by financial institutions. The regulator is required to lay the code before Parliament. In the course of developing policy on the financial regime for NHS foundation trusts, the Department of Health has consulted leading financial institutions on the financial metrics and ratios that it might be appropriate to include in such a code. These have been made available to NHS foundation trust applicants for planning purposes as they prepare their full applications. The metrics and ratios are currently under review and will be published shortly.

Baroness Noakes

asked Her Majesty's Government:

What consultation requirements will be applied to the first wave of National Health Service foundation trusts. [HL4479]

Baroness Andrews

Guidance on the consultation requirements has been provided to all first wave applicants for NHS foundation trust status. Copies of the guidance will be placed in the Library.

Baroness Noakes

asked Her Majesty's Government:

Whether any amounts have been paid to any National Health Service trusts to assist them in preparing applications for National Health Service foundation trust status; and, if so, whether they will state the amounts paid to each such National Health Service trust. [HL4480]

Baroness Andrews

£100,000 was provided to the 29 shortlisted trusts announced in May 2003. A further payment of £75,000 is now being made to the 25 currently developing applications.

Baroness Noakes

asked Her Majesty's Government:

Whether they intend to use advisers outside the Department of Health in connection with evaluating and approving applications for National Health Service foundation trust status; and, if so, whether they will give the names of the advisers and their expected fees. [HL4481]

Baroness Andrews

External advisers will be used in the process of evaluating and approving application for the NHS foundation trust status. There will be two main ways in which they will be involved. First, applicants will undergo an independent financial review. This review, following a competitive tendering exercise, will be carried out by Price Waterhouse Coopers, KPMG and Delloitte & Touche. Our estimated cost of this exercise is £1.1 million.

In addition, the Department of Health is taking advice from a group of external experts on the proposed governance arrangements. The members of this external reference group will not be paid. However, the department will meet their reasonable expenses. It is also intended to establish reference groups on human resources and service development strategy to help inform development of the assessment criteria in that area.