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Scottish Office Spending
7. Mr. Forth: To ask the Secretary of State for Scotland if he will make a statement about the implications of the forthcoming public expenditure survey for Scottish Office spending. [Interruption.] [2335]
Madam Speaker: Order. Question 7 has been called.
Mr. Dewar: My apologies, Madam Speaker. I was distracted by certain happenings, but I am sure that that was unintentional.
There will be no public expenditure survey in 1997, but I shall carry out an internal review of the plans for 1998-99.
Mr. Forth:
I welcome the right hon. Gentleman to his post and I remind him that the last time we faced each other in a debating chamber was during my maiden speech in the Glasgow university union in 1962. I have waited a long time to face him again, but I welcome the opportunity. In his reply to my hon. Friend the Member for Congleton (Mrs. Winterton), he said that the existing imbalance in per capita expenditure between Scotland and England was a system that has been "well established". Does he accept that his devolution proposals could or should change that? Does he accept that a Scottish Assembly should use its discretion to raise taxes to justify and to pay for any imbalance between Scottish public expenditure and its level in the rest of the United Kingdom?
Mr. Dewar:
I am delighted that the hon. Gentleman remembers Glasgow and that the memories have not been obliterated by his pleasure at being in Bromley and Chislehurst--a pleasure which, I suspect, was acute on 1 May. If he considers his Glasgow memories, he will understand some of the reasons for the differential to which he refers. It is not the intention that revenue-varying powers for a Scottish Parliament are meant, in some way, to compensate for a punitive raid on Scottish finances. I regard that as a perverse and eccentric view.
Mr. Welsh:
Why are the Labour Government continuing the Tory Government's policy of self-financing public sector pay awards which can only be funded by service cuts or rising unemployment, which affects both the private sector and local authorities? Why is Labour supporting the fourth and fifth consecutive years of that destructive Tory policy?
Mr. Dewar:
We have made clear what our spending limits mean and we shall stay within the announced limits. I hope that the hon. Gentleman will support that.
Mr. Maclennan:
If there is to be no increase in expenditure on roads in Scotland during the next two years, will the Secretary of State at least consider a reordering of priorities to enable the north coast road of Great Britain to become a proper two-lane road and to improve the A9 north of Helmsdale into Caithness, as those roads are well below standard and ought to be beneficiaries of a reordered programme for Scotland?
Mr. Dewar:
I have on several occasions driven those roads--sometimes to visit the hon. Gentleman--so I understand his point, and no doubt those carrying out the review of the roads programme will bear that in mind.
Mr. Alan Clark:
Since the Secretary of State's hon. Friend the Member for Cunninghame, North (Mr. Wilson)--a real friend this time--would not tell The Herald yesterday the cost of putting a Hyundai factory in Fife, will he confirm here to the House of Commons that it will cost the taxpayer £120,000 per job?
Mr. Dewar:
I often read what the right hon. Gentleman writes and I have come to the conclusion that I can class it largely as fiction. That figure is not accurate. I hope that he will support the efforts of Locate in Scotland--as well as the efforts of the present and previous Governments--to attract investment to this country.
8. Mr. Moore:
To ask the Secretary of State for Scotland what plans he has to meet with the chairmen of the NHS trusts in the borders to discuss the state of the trusts' finances. [2336]
The Parliamentary Under-Secretary of State for Scotland (Mr. Sam Galbraith):
I have not been approached by the chairmen of the trusts in the borders for such a meeting. However, arrangements are in hand to meet a representative group of trust chairmen in Scotland when a range of issues will be discussed.
Mr. Moore:
I hope that the Minister will include representatives from the borders in that group. What steps will he take to end the current uncertainty at the two trusts in the borders as a result of their short-term contracts for the current financial year? In particular, what assurance can he give that the anticipated shortfall of £750,000 at the Borders general hospital will not lead to cuts in patient care?
Mr. Galbraith:
The current shortfall is a result of a revaluation of assets and a requirement to pay a 6 per cent. return on capital. That is a matter to be negotiated between the trusts and the health board, and I look forward to a successful conclusion to the discussions.
Mr. Davidson:
When the Minister next meets chairmen of health boards, will he mention to many of them that their services are no longer required? Does he remember that many of the chairs of health boards--like their members--are simply Tory placemen who ought to be got rid of by a Labour Government?
Mr. Galbraith:
I am currently considering the question of who will chair the health boards and I hope to make an announcement very soon.
Mr. Bernard Jenkin:
As the hon. Gentleman cannot even get an assurance from the Chief Secretary on the future of the Barnett formula, what assurances can he give to the chairmen of health trusts in Scotland?
Mr. Galbraith:
Expenditure on the health service in Scotland is well laid out in our plans, and that will continue. The funding of the health service in Scotland is well known and secure.
Health Boards (Funding)
9. Mr. Donohoe: To ask the Secretary of State for Scotland when he next expects to discuss financial provision with the chairmen of the health boards. [2337]
Mr. Galbraith: I held the first of my regular meetings with health board chairmen on 6 June 1997.
Mr. Donohoe: Given the commitment by the Labour party in the manifesto to do away with the crazy internal market--and, specifically, given the proposal to halve the number of health board trusts in Scotland--can the Minister tell us whether the two acute trusts in Ayrshire will be axed?
Mr. Galbraith: We have already begun to dismantle the internal market; detailed plans will be set out in a White Paper. We are also considering the merging and reconfiguration of trusts and we are asking boards and trusts for their views. There will be full consultation. Of course the trusts to which my hon. Friend refers will be given consideration.
Mr. Menzies Campbell: As the Minister knows, there are several proposals in various parts of Scotland, not least in Fife, for the amalgamation of national health service trusts. Will he assure the House that the single criterion to be applied before any trusts are allowed to amalgamate will be the enhancement of patient care?
Mr. Galbraith: I can most certainly give the hon. and learned Gentleman that assurance. The main reason for amalgamation will be to improve care for patients in the area. When we have drawn up our plans, they will go out to full consultation before any final decision is made.
Mrs. Fyfe: Has my hon. Friend noticed that Health Care International has applied to have its bed complement reduced from 86 to 50? Remembering the gross waste of taxpayers' money under the previous Government on an unworkable hospital, will he make a statement about the action taken by the Labour Government, after decades of waiting, to get a first-class, up-to-date maternity unit built at the royal infirmary?
Mr. Galbraith: I was pleased to announce yesterday that we have been able to find £31 million of public capital to build the new maternity unit at the Glasgow royal infirmary. I was concerned that the private finance initiative process was delaying the project. The new unit is essential, as Rottenrow, which has served us well for many years, has become out of date. I am extremely pleased that we can now move forward.
Dr. Fox: Health chairmen will understand that money cannot be spent on health without first being raised. The Chief Secretary has refused to rule out prescription charges for some pensioners in England and Wales; will the Minister rule them out in Scotland?
Mr. Galbraith: Our comprehensive spending review is for the medium and long term. Its purpose is to ensure that all public moneys are best used to fulfil our manifesto commitments. As we set out in our manifesto, there is no question of the Government doing anything to breach the
fundamental principle of the NHS: that health care will be available to all according to need and free at the point of use.NHS Trusts (Management Efficiency)
10. Mr. Ernie Ross: To ask the Secretary of State for Scotland what plans he has to improve the management efficiency of NHS trusts. [2338]
Mr. Galbraith: The Government are determined to make progress in reducing the costs of managing the national health service. We have made clear our intention to replace the internal market. The details of our proposals will be contained in a White Paper to be published in the autumn. In the meantime, we have already taken action to release £10 million of savings in bureaucracy to reduce waiting lists and deal with emergency admissions, particularly in the winter months.
Mr. Ross: I congratulate my hon. Friend on moving so quickly to meet some of Labour's manifesto commitments. What efforts has he made to halt the creeping privatisation of clinical services in the national health service in Scotland?
Mr. Galbraith: The most important thing to say is that there will never, never be a repeat of the Stonehaven process under this Government. Clinical services will never again go out to the private finance initiative.
Mr. Ian Bruce: The Government are trying to save £100 million in the health service by cutting managers and clerical workers. How many will have to be sacked to achieve that saving?
Mr. Galbraith: The hon. Gentleman is talking about the NHS throughout the United Kingdom; the equivalent figure for Scotland, for which I have responsibility, is £10 million. We have already made it clear that if there are to be any job losses we hope that they will happen through natural wastage, voluntary redundancy or early retirement.
Mr. David Marshall: I congratulate my hon. Friend on his splendid announcement yesterday about the financing of the new maternity unit at Glasgow royal infirmary, which brings to an end 18 years of wrangling and inefficiency. Does he realise how welcome it is to people in the east end of Glasgow? How soon does he expect construction work to commence and how long will it take to complete the unit?
Mr. Galbraith: I want, first, to recognise the considerable effort that my hon. Friend has put into the project, fighting for his constituents in the east end of Glasgow. That is why I was especially happy to make the announcement. I hope that work will start extremely soon. The first patients will be admitted in 2000 and I hope to open the unit then.
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