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5 pm
Mr. Simon Burns (West Chelmsford): On a point of order, Madam Deputy Speaker. As you will be aware, after the Division on amendment No. 164, the
Government had their lowest majority in this Session—35. It might help the House to know that 40 Labour Scottish MPs voted with the Government to ensure that England did not have—[Interruption.]
Madam Deputy Speaker: Order. That is not a point of order for the Chair. I ruled on a similar matter earlier this afternoon.
I understand that the Minister is prepared to move amendments Nos. 233, 354, 242 to 244 and 234 and new clause 24, so I shall include them in the groups that I am about to call him to move.
Amendment made: No. 245, in page 3, line 7, leave out 'registration' and insert 'incorporation'.—[Mr. Hutton.]
Clause 6
Amendment made: No. 233, in page 3, line 27, at end insert—
'( ) taken as a whole the actual membership of the applicant's public constituency will be representative of those eligible for such membership,'.—[Mr. Hutton.]
Clause 10
Amendment made: No. 355, in page 5, line 8, leave out from 'who' to end of line and insert
'were first elected or appointed as'.—[Mr. Hutton.]
Clause 11
Amendment made: No. 356, in page 5, line 21, at end insert—
'( ) The Secretary of State may guarantee the payment of any amount payable by an NHS foundation trust under an externally financed development agreement.
"Externally financed development agreement" has the same meaning as in section 1 of the National Health Service (Private Finance) Act 1997 (c.56), reading references in subsections (3) and (5) of that section to the trust as references to the NHS foundation trust.'.—[Mr. Hutton.]
Clause 12
Amendment made: No. 246, in page 5, line 27, leave out 'organisations' and insert 'bodies.
A body is non-profit making if it does not carry on activities for the purpose of making profits for distribution to its members or others.'.—[Mr. Hutton.]
Clause 15
Amendments made: No. 247, in page 7, line 16, leave out
'which was an NHS trust'.
No. 248, in page 7, line 18, leave out 'the NHS foundation trust' and insert
'an NHS foundation trust which was an NHS trust'.—[Mr. Hutton.]
Clause 33
Amendments made: No. 249, in page 12, line 31, leave out 'trust' and insert
'relevant constituency and is not prevented from being a member of the board by paragraph 6A of Schedule 1'.
No. 250, in page 12, line 32, leave out 'general'.
No. 251, in page 12, line 34, leave out 'trust' and insert
'relevant constituency and is not prevented from being a member of the board by paragraph 6A of Schedule 1'.—[Mr. Hutton.]
Clause 35
Amendment made: No. 357, in page 13, line 11, at end insert 'or (Mergers)'.—[Mr. Hutton.]
'Schedule (Audit of accounts of NHS foundation trusts) (which makes provision in relation to the audit of the accounts of NHS foundation trusts) has effect.'.—[Mr. Hutton.]
Brought up, read the First and Second time, and added to the Bill.
'(1) An application may be made jointly by—
(a) an NHS foundation trust, and
(b) another NHS foundation trust or an NHS trust,
to the regulator for authorisation of the dissolution of the trusts and the transfer of some or all of their property and liabilities to a new NHS foundation trust established under this section.
(2) The application must—
(a) be supported by the Secretary of State if one of the parties to it is an NHS trust,
(b) specify the property and liabilities proposed to be transferred to the new NHS foundation trust,
(c) describe the goods and services which it is proposed should be provided by the new trust, and
(d) be accompanied by a copy of the proposed constitution of the new trust;
and must give any further information which the regulator requires the applicants to give.
(3) The applicants may modify the application with the agreement of the regulator at any time before authorisation is given under this section.
(4) The regulator may—
(a) issue a certificate incorporating the directors of the applicants as a public benefit corporation, and
(b) give an authorisation under this section to the corporation to become an NHS foundation trust,
if he is satisfied as to the following matters.
(5) The matters are that—
(a) the constitution of the new trust will be in accordance with Schedule 1 and will otherwise be appropriate,
(b) taken as a whole the actual membership of the public constituency of the new trust will be representative of those eligible for such membership,
(c) the new trust will be able to provide the goods and services which the authorisation is to require it to provide, and
(d) any other requirements which he considers appropriate are met.
(6) If regulations require the applicants to consult prescribed persons about the application, the regulator may not give an authorisation under this section unless he is satisfied that the applicants have complied with the regulations.
(7) The certificate is conclusive evidence of incorporation; and the authorisation is conclusive evidence that the corporation is an NHS foundation trust.
(8) On an authorisation being given under this section, the proposed constitution of the NHS foundation trust has effect, but the directors of the applicants may exercise the functions of the trust on its behalf until a board of directors is appointed in accordance with the constitution.'.—[Mr. Hutton.]
Brought up, read the First and Second time, and added to the Bill.
'(1) Where an authorisation is given under section (Mergers), the regulator is to specify the property and liabilities to be transferred to the new NHS foundation trust.
(2) Where such an authorisation is given, the Secretary of State is to make an order—
(a) dissolving the trusts in question, and
(b) transferring, or providing for the transfer of, the property and liabilities specified by the regulator to the new NHS foundation trust.
(3) The order may—
(a) transfer, or provide for the transfer of, any of the remaining property or liabilities to the persons mentioned in section 25(3),
(b) include provisions corresponding to those of Schedule 3.
(4) Where an NHS foundation trust is dissolved under this section, the regulator must give notice of the dissolution to the registrar of companies.
(5) Where one of the parties to an application under section (Mergers) is an NHS trust, the powers conferred on the Secretary of State by Part 4 of Schedule 2 to the 1990 Act are not exercisable in relation to the trust.
(6) Subsections (3) and (5) of section 6 apply to an authorisation under section (Mergers) as they do in relation to an authorisation under that section.'.—[Mr. Hutton.]
Brought up, read the First and Second time, and added to the Bill.
'An authorisation may require an NHS foundation trust to take steps to secure that (taken as a whole) the actual membership of its public constituency is representative of those eligible for such membership.'.—[Mr. Hutton.]
Brought up, read the First and Second time, and added to the Bill.
1 In auditing the accounts of any NHS foundation trust an auditor must by examination of the accounts and otherwise satisfy himself—
(a) that they are prepared in accordance with directions under paragraph 21 of Schedule 1,
(b) that they comply with the requirements of all other provisions contained in, or having effect under, any enactment which are applicable to the accounts,
(c) that proper practices have been observed in the compilation of the accounts, and
(d) that the trust has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources.
Right to documents and information
2 (1) An auditor of an NHS foundation trust has a right of access at all reasonable times to every document relating to the trust which appears to him necessary for the purposes of his functions under Part 1.
(2) The auditor may—
(a) require a person holding or accountable for any such document to give him such information and explanation as he thinks necessary for the purposes of his functions under Part 1,
(b) if he thinks it necessary, require the person to attend before him in person to give the information or explanation or to produce the document.
(3) The auditor may also—
(a) require any director or officer of the trust to give him such information or explanation as he thinks necessary for the purposes of his functions under Part 1,
(b) if he thinks it necessary, require the director or officer to attend before him in person to give the information or explanation.
(4) The trust must provide the auditor with every facility and all information which he may reasonably require for the purposes of his functions under Part 1.
This paragraph does not affect the generality of subparagraphs (1) to (3).
(5) A person who without reasonable excuse fails to comply with any requirement of an auditor of an NHS foundation trust under any of subparagraphs (1) to (3) is guilty of an offence.
(6) A person guilty of an offence under subparagraph (5) is liable on summary conviction—
(a) to a fine not exceeding level 3 on the standard scale, and
(b) to an additional fine not exceeding £20 for each day on which the offence continues after conviction for the offence.
(7) Any expenses incurred by an auditor of an NHS foundation trust in connection with proceedings for an offence under subparagraph (6) alleged to have been committed in relation to the audit of the accounts of the trust, so far as not recovered from any other source, are recoverable from the trust.
Reports
3 In auditing the accounts of an NHS foundation trust, the auditor must consider—
(a) whether, in the public interest, he should make a report on any matter coming to his notice in the course of the audit, in order for it to be considered by the trust or brought to the attention of the public, and
(b) whether the public interest requires any such matter to be made the subject of an immediate report rather than of a report to be made at the conclusion of the audit.
4 (1) When an auditor of an NHS foundation trust has concluded his audit of the trust's accounts, he must enter on the accounts—
(a) a certificate that he has completed the audit in accordance with Part 1, and
(b) his opinion on the accounts.
(2) But where the auditor makes a report to the trust under paragraph 3 at the conclusion of the audit, he may instead include the certificate and his opinion in that report.
5 (1) Any report under paragraph 3 must be sent by the auditor to the trust and the regulator—
(a) at once if it is an immediate report,
(b) otherwise not later than 14 days after conclusion of the audit.
(2) The trust must take the report into consideration as soon as practicable after receiving it.
Referral to regulator
6 If the auditor of an NHS foundation trust has reason to believe that the trust or a director or officer of the trust—
(a) is about to make, or has made, a decision which involves or would involve the incurring of expenditure which is unlawful, or
(b) is about to take, or has taken, a course of action which, if pursued to its conclusion, would be unlawful and likely to cause a loss or deficiency,
he must refer the matter at once to the regulator.
Audit of accounts of directors or officers
7 (1) Where a director or officer of an NHS foundation trust receives money or other property—
(a) on behalf of the trust, or
(b) for which he ought to account to the trust,
the accounts of the director or officer are to be audited by the auditor of the accounts of the trust.
(2) The accounts of the director or officer are to be made up to 31st March.
(3) Paragraph 20(4) of Schedule 1 and paragraphs 1 to 5 of this Schedule apply with the necessary modifications to the audit under this paragraph.
Restriction on disclosure of information
8 (1) No information relating to an NHS foundation trust or other person and obtained by an auditor (or by a person acting on the auditor's behalf) under Part 1 or in the course of an audit under that Part is to be disclosed except—
(a) with the consent of the person to whom the information relates,
(b) for the purposes of any functions of an auditor of an NHS foundation trust,
(c) for the purposes of the functions of the regulator,
(d) for the purposes of the functions of the Comptroller and Auditor General under Part 1,
(e) for the purposes of the functions of the Commission for Healthcare Audit and Inspection under Part 2,
(f) for the purposes of any criminal proceedings.
8 Jul 2003 : Column 994
(2) A person who discloses information in contravention of subparagraph (1) is guilty of an offence.
(3) A person guilty of an offence under subparagraph (2) is liable—
(a) on summary conviction, to imprisonment for a term not exceeding six months or to a fine not exceeding the statutory maximum (or to both),
(b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine (or to both).'.—[Mr. Hutton.]
Brought up, read the First and Second time, and added to the Bill.
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