§ Mr. Gristasked the Secretary of State for Wales if he will seek the agreement of the parties to publication of the terms of settlement reached in respect of defects in the construction of the University hospital of Wales, Cardiff.
§ Mr. Nicholas Edwards:The defects in question arose from construction between 1966 and 1969 and were of two main categories, mosaic cladding and structural defects. Counsel advised the Welsh Health Technical Services Organisation against pursuing a claim for the recovery of the cost of remedial measures in respect of the structural defects. The Public Accounts Committee was informed of this on 14 November 1983: a summary of the main features of counsel's advice had been given to it in March 1982. They were told that action was continuing in respect of the mosaics.
Having taken further advice from counsel, WHTSO signed an agreement with the architects, the consulting engineers and the liquidators of the building contractors on 24 November 1983 primarily concerned with the mosaic cladding but also in full and final settlement of all claims in respect of all defects in the building known at that time. The agreement stipulated that it should remain confidential to the parties, saving that WHTSO could disclose the terms in full to the Welsh Office, and envisaged subsequent disclosure in confidence to the Public Accounts Committee. This has been done.
I have asked the parties to the settlement to agree to wider publication of its terms. One party has objected. However, I have decided that in the public interest details of the settlement should be made available to the House. Accordingly, I have placed in the Library a copy of the agreement, together with copies of the related counsel's opinion and the previous counsel's opinion to which I have referred.