HL Deb 05 May 2004 vol 660 cc119-21WA
Baroness Noakes

asked Her Majesty's Government:

Further to the Written Answers by the Lord Warner on 19 April (WA 10–11), whether the Independent Regulator of National Health Service Foundation Trusts has acted lawfully in setting borrowing limits for National Health Service foundation trusts notwithstanding that he has not issued a prudential borrowing code as he is required to do by Section 12 of the Health and Social Care (Community Health and Standards) Act 2003. [HL2468]

Lord Warner

We are informed by the chairman of the Independent Regulator of NHS Foundation Trusts that interim borrowing limits had been set for the first 10 NHS foundation trusts in accordance with its powers under Section 17 of the Health and Social Care (Community Health and Standards) Act 2003. The consultation on the draft prudential borrowing code was published on 22 April 2004. The chairman of the Independent Regulator of NHS Foundation Trusts advises me that he has written to the noble Baroness enclosing a copy of the draft code and inviting her to meet him to discuss it in more detail. He has also advised that once the consultation has been completed and the responses considered, the prudential borrowing code will be made and a copy laid before Parliament. Borrowing limits for the first NHS foundation trusts will be reviewed by the Office of the Independent Regulator once the prudential borrowing code has been made and laid before Parliament, in accordance with Section 12 of the Act, and reviewed annually thereafter in accordance with Section 17 of the Act.

Baroness Noakes

asked Her Majesty's Government:

What are the consequences of the failure of the Independent Regulator of National Health Service Foundation Trusts to issue a prudential borrowing code under Section 12 of the Health and Social Care (Community Health and Standards) Act 2003. [HL2469]

Lord Warner

We are informed by the chairman of the Independent Regulator of NHS Foundation Trusts that the prudential borrowing code will be made and laid before Parliament once the consultation in accordance with Section 12 of the Health and Social Care (Community Health and Standards) Act 2003 has taken place. The consultation document on the draft prudential borrowing code was published on 22 April 2004. Interim borrowing limits set for the first 10 NHS foundation trusts will be reviewed by the Office of the Independent Regulator once the prudential borrowing code has been laid before Parliament in accordance with Section 12 of the Act, and reviewed annually thereafter in accordance with Section 17 of the Act.

Baroness Noakes

asked Her Majesty's Government:

Whether they were consulted by the Independent Regulator of National Health Service Foundation Trusts about the fact that he did not intend to issue a prudential borrowing code under Section 12 of the Health and Social Care (Community Health and Standards) Act 2003 before he set borrowing limits for National Health Service foundation trusts; and, if so, what was their response. [HL2470]

Lord Warner

The Department of Health was informed by the Office of the Independent Regulator of its intention to set interim borrowing limits for new borrowing by the first 10 NHS foundation trusts, pending consultation on a draft prudential borrowing code in accordance with Section 12 of the Health and Social Care (Community Health and Standards) Act 2003. Borrowing limits for the first NHS foundation trusts will be reviewed by the Office of the Independent Regulator once the prudential borrowing code has been made and laid before Parliament in accordance with Section 12 of the Act, and reviewed annually thereafter in accordance with Section 17 of the Act.

Baroness Noakes

asked Her Majesty's Government:

What powers they have to ensure that the Independent Regulator of National Health Service Foundation Trusts acts in accordance with his statutory obligations. [HL2471]

Lord Warner

The Independent Regulator of NHS Foundation Trusts is accountable to Parliament for meeting statutory obligations set out in the Health and Social Care (Community Health and Standards) Act 2003 and is required to produce an annual report to be laid before Parliament. The chairman of the independent regulator is the accounting officer for the independent regulator. As such he is responsible for ensuring that the public funds allocated to the independent regulator are properly managed and safeguarded and are used in line with the regulator's statutory functions and responsibilities, including the duty to exercise functions effectively, efficiently and economically.