§ Mr. WorthingtonTo ask the Secretary of State for Scotland when he was first informed that Health Care International in Clydebank had financial difficulties; and what action he has taken to alleviate these difficulties.
§ Mr. StewartOfficials of Locate in Scotland and Scottish Enterprise have been involved in discussions about this company's financial position over the last two months, and my right hon. Friend has been kept informed of developments.
§ Mr. WorthingtonTo ask the Secretary of State for Scotland what Government assistance has been given to Health Care International in Clydebank; and what has been its total value.
§ Mr. StewartTotal assistance offered to this project amounted to some £30 million, the largest single element of which was an offer of £22 million in regional selective assistance. This relates to total investment in the project of £180 million.
§ Mr. WorthingtonTo ask the Secretary of State for Scotland when he intends to reply to the letter from the hon. Member for Clydebank and Milngavie of 4 August about Health Care International in Clydebank.
§ Lord James Douglas-HamiltonMy noble and learned Friend the Minister of State replied to the hon. Member for Clydebank and Milngavie on 21 October. I hope that he has now received that reply.
§ Mr. WorthingtonTo ask the Secretary of State for Scotland on what dates in the past two years his representatives have met with, or had other contact with, representatives of Health Care International from Clydebank.
§ Mr. StewartMy right hon. Friend's officials have had regular contact with the company over this period.
§ Mr. WorthingtonTo ask the Secretary of State for Scotland in what way the Government's loan to Health Care International was secured.
§ Mr. StewartAn unsecured loan was advanced to the company, by Scottish Enterprise, under the terms of its 725W leg-up scheme. There has been no other loan from the Government or its agencies.
§ Mr. WorthingtonTo ask the Secretary of State for Scotland if all the intended regional selective assistance has now been paid to Health Care International in Clydebank; and what is the cash value of this assistance.
§ Mr. StewartAn offer of £22 million in regional selective assistance was made to the company, not all of which has been paid.
§ Mr. WorthingtonTo ask the Secretary of State for Scotland who owns the site on which Health Care International's hospital in Clydebank is situated.
§ Mr. StewartThe site is owned by the company.
§ Mr. WorthingtonTo ask the Secretary of State for Scotland if Health Care International has fully paid for its hospital in Clydebank.
§ Mr. StewartThis is a matter for the company.
§ Mr. WorthingtonTo ask the Secretary of State for Scotland what undertakings Health Care International have given to him about its relationship with the national health service.
§ Lord James Douglas-HamiltonHCI has consistently stated that its objective is to complement and not compete with the NHS.
The authorisation of the construction of the Clydebank hospital given in 1987 by my right hon. and learned Friend, the Member for Edinburgh, Pentlands (Mr. Rifkind) the then Secretary of State for Scotland, contained conditions about staffing, reimbursement of nurse training costs and supply of blood and blood products. A copy of the authorisation is in the Library.
§ Mrs. FyfeTo ask the Secretary of State for Scotland what plans he has to send work to(a) Health Care International and (b) other private hospitals.
§ Lord James Douglas-Hamilton[holding answer 24 October 1994]None. Individual health boards are free to purchase health care from HCI where the hospital can offer specific medical techniques not readily available elsewhere or where the NHS sees a need for waiting lists to be reduced more quickly than the service itself is in a position to achieve. This position applies equally for all independent providers.
§ Mrs. FyfeTo ask the Secretary of State for Scotland when he received the study ordered by Health Care International from Ernst and Whinney into the size of the market for an American hospital; what conclusions he drew from its report; and when he investigated Health Care International's forecasts as to when it would achieve its capacity.
§ Mr. Stewart[holding answer 24 October 1994]The study was undertaken in 1987 and formed part of the information on which decisions were taken concerning the hospital.
§ Mr. WorthingtonTo ask the Secretary of State for Health what proposals he has to safeguard jobs and beds at NHS hospitals in Greater Glasgow and Health Care International in Clydebank.
§ Lord James Douglas-HamiltonGreater Glasgow health board is currently preparing its strategy for acute and maternity services in Glasgow. This will outline the future level of NHS provision of services and will be subject to full public consultation. Officials of Locate in Scotland are currently engaged in unrelated discussions726W about the financial restructuring of HCI with a view to securing its future.
§ Mr. WorthingtonTo ask the Secretary of State for Scotland on what occasions he has met the founders of Health Care International or their representatives.
§ Mr. StewartMy right hon. Friend met the founders of the company or its representatives on four occasions between October 1987 and June of this year.