HC Deb 20 February 1990 vol 167 cc719-20W
89. Mr. Quentin Davies

To ask the Secretary of State for Health if he will make a statement on progress of the capital charging initiative.

Mr. Freeman

The Inland Revenue is currently undertaking a valuation of the National Health Service estate, and the results of this exercise will be available in the Library from April 1990. Health authorities are making good progress in preparing registers of their capital assets, which will enable them to calculate estimated capital charges during the period of shadow operation in 1990–91 described in the working papers Nos. 5 and 9. These estimates will be reviewed before the scheme is fully implemented in April 1991.

116. Mr. Stanbrook

To ask the Secretary of State for Health what implications there will be for hospital nationalisation schemes of his proposal for capital charging.

Mr. Freeman

From April 1991, health authorities will be expected to include the effects on capital charges of their proposals for hospital rationalisation schemes in the submissions they make to the Department of Health. This will enable better informed decisions to be taken, as full consideration will be given to the recurring costs of using assets over a future period, and not just to the capital outlay involved.