§ The Secretary of State for Health (Mr. Alan Milburn)Pursuant to the dissolution of 59 National health Service trusts on 1 April 2002 and their reconfiguration through the establishment of nineteen new NHS trusts, I propose to create originating capital for the new NHS trusts equal to the net assets transferred to them and therefore to remit the outstanding debt of the dissolved trusts.
A number of primary care trusts were also established during the year. Public dividend capital is not required for the establishment of new primary care trusts as they are subject to a different financial regime. Net assets transferred from dissolving NHS trusts to primary care trusts are reflected in the general fund of the primary care trust.
These operations involved no overall loss to the Exchequer. Her Majesty's Treasury has today presented a minute to the House giving particulars and circumstances of the proposed remission which it has approved in principle.