§ Mr. Budgenasked the Secretary of State for Social Services what action he proposes to take following the study he commissioned of the scope for reducing public sector involvement in funding loans to family doctors for the provision of surgery premises.
§ Mr. NewtonThe General Practice Finance Corporation has been asked to invite private financial institutions to participate in loans to family doctors for the provision of surgery premises. The decision follows a study by Hambros bank into the feasibility of reducing public sector involvement in these loans. Hitherto the corporation's only method of providing funds for doctors has been public sector borrowing and as such this source has been subject to cash limits. The new arrangements will free the corporation from this restriction by allowing it to provide money to doctors from private sector sources such as banks and building societies. As a result, the public sector provision is being reduced significantly over the next three years. The Government are confident that the GPFC is well placed to attract private sector finance alongside public sector finance by virtue of its present excellent level of performance. Ministers will be kept closely informed of progress with this new development. We will wish to ensure that recent improvements in surgery premises are maintained, particularly in underprivileged areas.