§ Lord Harris of Greenwichasked Her Majesty's Government:
Whether they will make a statement on the decision by Macclesfield Health Authority to withdraw a substantial proportion of their promised grant to the new East Cheshire Hospice, thus reducing the number of available beds by 50 per cent.
880WA
§ Lord SkelmersdaleMacclesfield Health Authority drew up a number of proposals in the form of a financial package designed to reduce a potential end-of-year overspend. These proposals included the reduction of a planned contribution of £125,000 per annum for three years from 1987–88 to the East Cheshire Hospice.
The authority has now guaranteed the sum of £67,500 in 1987–88 and again in 1988–89. Future contributions to the hospice will be determined by the authority against its financial position at the time. I understand that the anticipated revenue costs of running the hospice will be about £350,000 per annum. The decision of the health authority to reduce its contribution means that the hospice has "lost" £57,500 anticipated revenue, some 17 per cent. of estimated running costs.
Macclesfield Health Authority regrets having had to bring about such economies and, working closely with the hospice committee, has come forward with tangible help to ease their financial burden. (For example, the authority has offered to include the hospice in its tendering contracts for maintenance, the use of the authority's catering facilities and the purchase of supplies from the region's central stores.)