---

NHS Trusts

Mrs. Jane Kennedy: To ask the Chancellor of the Exchequer if he will make a statement on the discrepancy between the originating capital debt allocated to the Royal Liverpool and Broadgreen University Hospitals national health service trust in SI No. 350 and that set out in the Treasury minute on dissolution and reconfiguration of certain national health service trusts. [20329]

Mr. Horam: I have been asked to reply.

The amount of originating capital debt allocated to the Royal Liverpool and Broadgreen University Hospitals national health service trust represents the excess of the valuation of the assets over the liabilities which were transferred to it on, or in connection with, its establishment. The figure in SI No. 350--£135,395,656 split evenly between public dividend capital and interest-bearing initial loan--was arrived at by aggregating the values of land and buildings provided by the district valuer, the values of equipment taken from the asset registers and the values of debtors and creditors taken from the audited books of account of the two dissolved trusts. These values were certified by auditors appointed by the Audit Commission prior to the setting of the OCD of the new trust.

The figures contained in the departmental minute on the dissolution and reconfiguration of certain NHS trusts which was presented by the Treasury on 20 February 1996 are the liabilities outstanding to the Consolidated Fund at 1 April 1995 in respect of the OCD and further long-term loans issued by the Secretary of State for Health to Royal Liverpool University Hospital NHS trust and Broadgreen Hospital NHS trust before their dissolution. These liabilities, which were transferred to Royal Liverpool and Broadgreen University Hospitals national health service trust, were left out of account in determining the latter's net assets for the purposes of SI No. 350.

The total of £114,112,928 proposed to be remitted comprises:

	£
Royal Liverpool Hospital Trust
OCD--Initial loan	34,112,288
OCD--PDC	39,665,451
Further borrowing	7,531,600
Total	81,309,339
Broadgreen Hospital NHS Trust
OCD--Initial loan	15,042,059
OCD--PDC	17,491,230
Further borrowing	270,300
Total	32,803,589

There need not be any direct relationship between the public debt of a dissolving trust or trusts and the OCD of any successor body. The former arises as a result of the OCD set at some point in the past, based on net asset values at that time, and subsequently changes as a result of principal repayments and new borrowing. The latter is based on the net asset values at current valuation on the date of a trust's establishment.

14 Mar 1996 : Column: 691

Mrs. Kennedy: To ask the Chancellor of the Exchequer if he will make it his policy not to implement the Treasury minute on the dissolution and reconfiguration of certain national health service trusts--remission of outstanding debt, until he has published an explanation of the calculations of the basis contained therein. [20355]

Mr. Jack: The explanation is as follows:

The amounts totalling £448,876,543 which are proposed for remission are the outstanding liabilities to the Consolidated Fund as at 31 March 1995 of seven NHS trusts which were dissolved on 1 April 1995. These liabilities are in respect of their outstanding originating capital debt, which is deemed under section 9(3) of the National Health Service and Community Care Act 1990 to have been issued out of moneys provided by Parliament, and their further borrowings and any issues of public dividend capital from the Secretary of State for Health which have been paid out of moneys provided by Parliament.

The figure of £494,027,365 is the total originating capital debt of the five new trusts, which were established on 1 April 1995 from mergers of the dissolved trusts with each other or with directly managed unit. The trusts concerned are listed in paragraph 7 of the minute, and their individual originating capital debt is specified in SI 350. In accordance with section 9(1) of the National Health Service and Community Care Act 1990, each new trust's originating capital debt represents the excess of the valuation of the assets over the valuation of the liabilities transferred to it on or in connection with its establishment.

The difference between the newly created capital debt and the amounts being written off reflects differences in composition and valuation between the net assets of the new trusts and those of the dissolved trusts concerned.

PRIME MINISTER

Exports (Iraq)

Mr. Kirkwood: To ask the Prime Minister if he will place in the Library the minute circulated on 1 August 1990 of the meeting chaired by the Secretary of State for Foreign and Commonwealth Affairs on 19 July 1990 in

14 Mar 1996 : Column: 692

regard to the changing of the 1985 Howe guidelines concerning the sale of goods to Iraq; and if he will make a statement. [20331]

The Prime Minister: This document was submitted as evidence to Sir Richard Scott's inquiry. I understand that Sir Richard Scott proposes to publish as soon as possible any documents which he considers relevant to his report, consistent with his procedures.

Engagements

Sir Peter Tapsell: To ask the Prime Minister if he will list his official engagements for Thursday 14 March. [19239]

The Prime Minister: This morning I presided at a meeting of the Cabinet and had meetings with ministerial colleagues and others. In addition to my duties in this House, I shall be having further meetings later today.

HOUSE OF COMMONS

House of Commons Notepaper

Mr. Morgan: To ask the right hon. Member for Berwick upon Tweed, representing the House of Commons Commission, (1) what representations he has had concerning the die-stamping of House of Commons notepaper with the official stamp and portcullis crest by Wilprint Ltd. since October 1995; [20852]

(2) when Wilprint Ltd. won the contract for die-stamping the official stamp and portcullis crest on the notepaper of the House; and what is the duration of the contract. [20853]

Mr. Beith: I have received one representation from the hon. Member himself. Her Majesty's Stationery Office is, of course, responsible for contracts with individual firms, but I can tell the hon. Member that the contract for die-stamping House of Commons stationery was awarded by HMSO to Wilprint Ltd. in February 1995 after competitive tender. The contract will cease in October 1996.

ENVIRONMENT

Asylum Seekers

Mr. Chris Smith: To ask the Secretary of State for the Environment how he has computed the figure of 80 per cent. in determining what percentage of local authority costs in meeting the needs of asylum seekers should be met by Her Majesty's Government, following the withdrawal of social security benefits. [20275]

Mr. Curry: The Government consider that it is a reasonable basis for making additional resources available to local authorities in England for this purpose for 1995-96 and 1996-97.

North Lincolnshire Authority

Mr. Morley: To ask the Secretary of State for the Environment what plans he has to provide additional

14 Mar 1996 : Column: 693

financial assistance to North Lincolnshire authority similar to that which has been announced for Scottish unitary authorities; and if he will make a statement. [19985]

Sir Paul Beresford: My right hon. Friend has already provided that some £2.182 million is to be paid to North Lincolnshire under section 88A of the Local Government Finance Act 1988 to recompense North Lincolnshire district council for the income forgone as a consequence of the transitional reduction of council taxes under the Local Government Changes for England (Council Tax) (Transitional Reduction) Regulations 1996 (SI 1996 No. 176 as amended by SI 1996 No. 333).

We have no plans to make further assistance available.

Energy Saving Trust

Mr. Robert Ainsworth: To ask the Secretary of State for the Environment what level of funding is projected for the current financial year and each financial year to the year 2000 for the Energy Saving Trust from (a) gas consumers, (b) electricity consumers and (c) other private sector sources. [20395]

Mr. Robert B. Jones: I refer the hon. Member to my answer of 9 January 1996, Official Report, column 4, which outlined the Government's proposed funding of the Energy Saving Trust. The trust is an independent company and non-Government funding is a matter for the trust.

Environmental Protection

Mr. Bennett: To ask the Secretary of State for the Environment, pursuant to his answer of 5 March, Official Report, column 102, if he will list the steps taken to ensure full compliance with the Environmental Protection (Applications, Appeals and Registers) Regulations 1991 in respect of the recent variation of the authorisation to burn secondary liquid fuel granted to Castle Cement under part I of the Environmental Protection Act 1990. [20348]

Mr. Clappison: Her Majesty's inspectorate of pollution issued the variation to Castle Cement on 23 January 1996 under section 10 of the Environmental Protection Act 1990, and followed all the requirements set out in this and in part II of schedule 1 to the Act, which sets out how variations are to be treated. The inspectorate treated the variation as substantial for the purposes of section 10 and consulted all those prescribed in SI 507. The inspectorate put copies of all notices and other papers as required by the Act on the public registers and carefully considered all the comments it received both from statutory consultees and elsewhere before taking its decision.

---