§ Mr. CousinsTo ask the Secretary of State for Health if the agreement between Fletcher Joseph Partnership and the Northern regional health authority is still in force; whether such agreements are currently under review by her Department or by other agencies; whether such agreements are deemed ultra vires; and if she will make a statement.
§ Mr. SackvilleThe district auditor has made a confidential report to my right hon. Friend the Secretary of State under section 20(3) of the National Health Service and Community Care Act 1990 concerning the transfer of the former Northern regional health authority's architects department to the Fletcher Joseph Partnership in 1990. After considering fresh legal advice obtained by the RHA, we have accepted the auditor's view that the agreement was ultra vires the authority on one narrow ground. We therefore regard the agreement as being no longer in force.
As a general principle, health authorities have the legal powers to make agreements with external contractors to transfer non-core health authority functions, such as architects services. In drawing up such agreements, health authorities need to take legal advice to ensure they are acting within their powers. The NHS executive has carried out a review of non-core NHS trading agencies and will be producing general guidance for authorities shortly.