§ The Parliamentary Under-Secretary of State, Department of Health (Lord Warner)
My right honourable friend the Secretary of State for Health has made the following Written Ministerial Statement today.
Pursuant to the dissolution of 16 National Health Service trusts since 1 August 2002 and their reconfiguration through the establishment of seven new NHS trusts, I propose to create originating capital for the new NHS trusts equal to the net assets transferred to them and therefore to remit the outstanding debt of the dissolved trusts.
Assets from some of the dissolved trusts were also transferred to primary care trusts. Public dividend capital is not required as a financing transaction for these transfers as primary care trusts are subject to a different financial regime. Net assets transferred from dissolving NHS trusts to primary care trusts are reflected in an increase to the general fund of the primary care trust.
These operations involved no overall loss to the Exchequer. Her Majesty's Treasury has today presented a minute to the House giving particulars and circumstances of the proposed remission which it has approved in principle.