National Health Service (Wales) Bill [HL]

House of Commons

Session 2005 - 06
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Other Bills before Parliament

National Health Service (Wales) Bill [HL]

National Health Service (Wales) Bill [HL]
Part 11 — Property and finance
Chapter 3 — Property transferred under the National Health Service Act 1946
105


includes provision for the transfer of any rights and liabilities arising from that
property.
(3)
Where a transfer of property by virtue of a provision to which this section
applies is of, or includes—
(a)
land held on lease from a third party, or
5
(b)
any other asset leased or hired from a third party or in which a third
party has an interest,

the transfer is binding on the third party notwithstanding that, apart from this
subsection, it would have required his consent or concurrence.
(4)
“Third party” means a person other than the Welsh Ministers or an NHS body.
10
(5)
Nothing in a provision to which this section applies affects any power of Her
Majesty, the court (as defined in the Charities Act 1993 (c. 10)) or any other
person, to alter the trusts of any charity.
(6)
Nothing in section 12 of the Finance Act 1895 (c. 16) (which requires certain
Acts and certain instruments relating to the vesting of property by virtue of an
15
Act to be stamped as conveyances on sale) applies to—
(a)
a provision to which this section applies, or
(b)
an order made in pursuance of any such provision.
(7)
Stamp duty is not payable on an order falling within subsection (6)(b).
Chapter 3
20
Property transferred under the National Health Service Act 1946
166
Transferred property free of trusts
(1)
The Welsh Ministers may use any property—
(a)
which is vested in them, and
(b)
to which section 219 of the National Health Service Act 2006 (c. 00)
25
applies,

for the purpose of any of their functions under this Act.
(2)
But the Welsh Ministers must so far as practicable secure that the objects for
which any such property was used immediately before the transfer mentioned
in subsection (1) of that section are not prejudiced by the exercise of the power
30
conferred by this section.
167
Trust property previously held for general hospital purposes
(1)
This section applies to property—
(a)
transferred under section 23 of the National Health Service
Reorganisation Act 1973 (c. 32) (winding-up of hospital endowment
35
funds), or
(b)
transferred under section 24 of that Act (transfer of trust property from
abolished authorities) and which immediately before the day
appointed for the purposes of that section was, in accordance with any
provision contained in or made under section 7 of the National Health
40
Service Act 1946 (c. 81), applicable for purposes relating to hospital
services or relating to some form of research,

National Health Service (Wales) Bill [HL]
Part 11 — Property and finance
Chapter 4 — Raising money
106


including any such property which has been further transferred under section
92 of the National Health Service Act 1977 (c. 49).
(2)
This section continues to apply to any such property after any further transfer
under section 161 or 162.
(3)
The person holding the property after the transfer or last transfer must secure,
5
so far as is reasonably practicable, that the objects of any original endowment,
and the observance of any conditions attached to that endowment, including
in particular conditions intended to preserve the memory of any person or
class of persons, are not prejudiced by this Part of this Act.
(4)
“Original endowment” means a hospital endowment which was transferred
10
under section 7 of the National Health Service Act 1946 (c. 81) and from which
the property in question is derived.
(5)
Subject to subsection (3), the property must be held on trust for such purposes
relating to hospital services (including research), or to any other part of the
health service associated with any hospital, as the person holding the property
15
considers appropriate.
(6)
Where the person holding the property is a body of special trustees, the power
conferred by subsection (5) must be exercised as respects the hospitals for
which they are appointed.
168
Voluntary hospitals
20
(1)
Subsection (2) applies where—
(a)
any hospital provided by the Welsh Ministers in accordance with this
Act was a voluntary hospital transferred by virtue of the National
Health Service Act 1946, and
(b)
the character and associations of that hospital before its transfer were
25
such as to link it with a particular religious denomination.
(2)
Regard must be had in the general administration of the hospital to the
preservation of that character and those associations.
Chapter 4
Raising money
30
169
Power to raise money
(1)
This section applies to any—
(a)
Local Health Board,
(b)
NHS trust, or
(c)
Special Health Authority.
35
(2)
A body to which this section applies has power to engage in activities intended
to stimulate the giving (whether on trust or otherwise) of money or other
property to—
(a)
assist the body in providing or improving any services or any facilities
or accommodation which is or are, or will be, provided as part of the
40
health service, or
(b)
assist it in connection with its functions with respect to research.

National Health Service (Wales) Bill [HL]
Part 11 — Property and finance
Chapter 4 — Raising money
107

(3)
Subject to any directions of the Welsh Ministers excluding specified
descriptions of activity, the activities authorised by this section include—
(a)
public appeals or collections,
(b)
competitions,
(c)
entertainments,
5
(d)
bazaars,
(e)
sales of produce or other goods, and
(f)
other similar activities.
(4)
The activities may involve the use of land, premises or other property held by
or for the benefit of the body exercising the power.
10
(5)
Subsection (4) is subject to any restrictions on the purposes for which trust
property may be used.
(6)
Subject to this section and section 163, the body at whose instance property is
given in pursuance of this section must, after defraying out of it any expenses
incurred in obtaining it, hold, administer and apply the property on trust for
15
or for the purpose for which it was given.
(7)
Where property held by a body under this section is more than sufficient to
enable the purpose for which it was given to be fulfilled, the excess is
applicable, in default of any provision for its application made by the trust or
other instrument under or in accordance with which the property comprising
20
the excess was given, for such purposes connected with any of the functions of
the body as it considers appropriate.
(8)
Where property held by a body under this section is insufficient to enable the
purpose for which it was given to be fulfilled the body may apply so much of
the capital or income at its disposal as is needed to enable the purpose to be
25
fulfilled.
(9)
Subsection (8) is subject in the case of trust property to any restrictions on the
purpose for which the trust property may be applied and, in the case of money
paid or payable by the Welsh Ministers under section 171, to any directions
they may give.
30
(10)
Where the capital or income applicable under subsection (8) is insufficient or is
not applied to enable the purpose to be fulfilled, the property held by the body
is applicable, in default of any provision for its application made by the trust
or other instrument under or in accordance with which the property was given,
for such purposes connected with any of the functions of the body as it
35
considers appropriate.
(11)
Where under subsection (7) or (10) property becomes applicable for purposes
other than that for which it was given the body applying the property must
have regard to the desirability of applying it for a purpose similar to that for
which it was given.
40
(12)
References in this section to the purposes for which trust property may be used
or applied include, in the case of trust property which has been transferred
under section 161 or 162, references to those purposes as enlarged by section
164.

National Health Service (Wales) Bill [HL]
Part 11 — Property and finance
Chapter 6 — Finance
108

Chapter 5
Formation of companies
170
Public-private partnerships
(1)
The Welsh Ministers may form, or participate in forming, companies to
provide facilities or services to persons or bodies exercising functions, or
5
otherwise providing services, under this Act.
(2)
The Welsh Ministers may, with a view to securing or facilitating the provision
by companies of facilities or services to persons or bodies falling within
subsection (1)—
(a)
invest in the companies (whether by acquiring assets, securities or
10
rights or otherwise), or
(b)
provide loans and guarantees and make other kinds of financial
provision to or in respect of them,

or both.
(3)
For the purposes of subsections (1) and (2) it is immaterial that the facilities or
15
services provided or to be provided by the companies in question are not
provided or to be provided—
(a)
only to persons or bodies falling within subsection (1), or
(b)
to persons or bodies falling within subsection (1) only in their capacities
as persons or bodies such as are mentioned in that provision.
20
(4)
“Companies” means companies within the meaning of the Companies Act 1985
(c. 6).
(5)
This section does not affect any powers of the Welsh Ministers exercisable
otherwise than by virtue of this section.
Chapter 6
25
Finance
Special Health Authorities
171
Means of meeting expenditure of Special Health Authorities out of public
funds
(1)
The Welsh Ministers must pay in respect of each financial year to each Special
30
Health Authority sums not exceeding the amount allotted for that year by the
Welsh Ministers to the Special Health Authority towards meeting the
expenditure of the Special Health Authority which is attributable to the
performance by it of its functions in that year.
(2)
An amount is allotted to a Special Health Authority for a year under this
35
section when it is notified by the Welsh Ministers that the amount is allotted to
it for that year.
(3)
The Welsh Ministers may make an allotment under this section increasing or
reducing an allotment previously so made.

National Health Service (Wales) Bill [HL]
Part 11 — Property and finance
Chapter 6 — Finance
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(4)
The Welsh Ministers may give directions to a Special Health Authority with
respect to—
(a)
the application of sums paid to it under this section, or
(b)
the payment of sums by it to the Welsh Ministers in respect of charges
or other sums referable to the valuation or disposal of assets.
5
(5)
Sums falling to be paid to Special Health Authorities under this section are
payable subject to such conditions as to records, certificates or otherwise as the
Welsh Ministers may determine.
172
Financial duties of Special Health Authorities
(1)
Each Special Health Authority must, in respect of each financial year, perform
10
its functions so as to secure that its expenditure which is attributable to the
performance by it of its functions in that year does not exceed the aggregate
of—
(a)
the amount allotted to it for that year under section 171(1),
(b)
any sums received by it in that year under any provision of this Act
15
(other than sums received by it under that subsection), and
(c)
any sums received by it in that year otherwise than under this Act for
the purpose of enabling it to defray any such expenditure.
(2)
The Welsh Ministers may give such directions to a Special Health Authority as
appear to be requisite to secure that the Special Health Authority complies
20
with the duty under subsection (1).
(3)
To the extent to which—
(a)
any expenditure is defrayed by a Special Health Authority as trustee or
on behalf of a Special Health Authority by special trustees, or
(b)
any sums are received by a Special Health Authority as trustee or under
25
section 169,

that expenditure and, subject to subsection (5), those sums, must be
disregarded for the purposes of this section.
(4)
For the purposes of this section sums which in the hands of a Special Health
Authority cease to be trust funds and become applicable by the Special Health
30
Authority otherwise than as trustee must be treated, on their becoming so
applicable, as having been received by the Special Health Authority otherwise
than as trustee.
(5)
Of the sums received by a Special Health Authority under section 169 so much
only as accrues to the Special Health Authority after defraying any expenses
35
incurred in obtaining them must be disregarded under subsection (3).
(6)
Subject to subsection (3), the Welsh Ministers may by directions determine—
(a)
whether specified sums must, or must not, be treated for the purposes
of this section as received under this Act by a specified Special Health
Authority,
40
(b)
whether specified expenditure must, or must not, be treated for those
purposes as expenditure within subsection (1) of a specified Special
Health Authority, or
(c)
the extent to which, and the circumstances in which, sums received by
a Special Health Authority under section 171 but not yet spent must be
45
treated for the purposes of this section as part of the expenditure of the

National Health Service (Wales) Bill [HL]
Part 11 — Property and finance
Chapter 6 — Finance
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Special Health Authority and to which financial year’s expenditure
they must be attributed.
(7)
“Specified” means of a description specified in the directions.
173
Resource limits for Special Health Authorities
(1)
Each Special Health Authority must ensure that the use of its resources in a
5
financial year does not exceed the amount specified for it in relation to that year
by the Welsh Ministers.
(2)
For the purpose of subsection (1) the Welsh Ministers may give directions—
(a)
specifying uses of resources which must, or must not, be taken into
account,
10
(b)
making provision for determining to which Special Health Authority
certain uses of resources must be attributed,
(c)
specifying descriptions of resources which must, or must not, be taken
into account.
(3)
The Welsh Ministers may give such directions to a Special Health Authority as
15
appear to be requisite to secure that it complies with the duty under subsection
(1).
(4)
Subsections (3) to (5) of section 172 apply in relation to the duty under
subsection (1) of this section as they apply in relation to the duties under
subsections (1) and (2) of that section; and for that purpose references to the
20
defraying of expenditure and the receipt of sums are references to the incurring
of liabilities and the acquisition of assets.
(5)
Where the Welsh Ministers have specified an amount under this section in
respect of a financial year, they may vary the amount by a later specification.
(6)
In this section a reference to the use of resources is a reference to their
25
expenditure, consumption or reduction in value.
Local Health Boards
174
Public funding of Local Health Boards
(1)
The Welsh Ministers must, in respect of each financial year, pay to each Local
Health Board—
30
(a)
sums equal to its general ophthalmic and pharmaceutical services
expenditure, and
(b)
sums not exceeding the amount allotted by the Welsh Ministers to the
Local Health Board for that year towards meeting the Local Health
Board’s main expenditure in that year.
35
(2)
In determining the amount to be allotted for any year to a Local Health Board
under subsection (1)(b) (or in varying the amount under subsection (9)), the
Welsh Ministers may take into account, in whatever way they consider
appropriate—
(a)
the Local Health Board’s general ophthalmic and pharmaceutical
40
services expenditure, and
(b)
expenditure which would have been the Local Health Board’s general
ophthalmic and pharmaceutical services expenditure but for an order

National Health Service (Wales) Bill [HL]
Part 11 — Property and finance
Chapter 6 — Finance
111

under section 180(2) (special arrangements as to payment of
remuneration),

during any period the Welsh Ministers consider appropriate (or such elements
of that expenditure as they consider appropriate).
(3)
Where the Welsh Ministers have made an initial determination of the amount
5
(“the initial amount”) to be allotted for any year to a Local Health Board under
subsection (1)(b), they may increase the initial amount by a further sum if it
appears to them that over a period notified to the Local Health Board—
(a)
it satisfied any objectives notified to it as objectives to be met in
performing its functions, or
10
(b)
it performed well against any criteria notified to it as criteria relevant to
the satisfactory performance of its functions (whether or not the
method of measuring its performance against those criteria was also
notified to it).
(4)
“Notified” means specified or referred to in a notice given to the Local Health
15
Board by the Welsh Ministers.
(5)
In making any increase under subsection (3), the Welsh Ministers may
(whether by directions under subsection (10) or otherwise) impose any
conditions they consider appropriate on the application or retention by the
Local Health Board of the sum in question.
20
(6)
Subsection (7) applies where—
(a)
the Welsh Ministers have, under subsection (3), increased by any sum
the amount to be allotted for any year to a Local Health Board,
(b)
the Welsh Ministers have notified the Local Health Board of the
allotment, and
25
(c)
it subsequently appears to the Welsh Ministers that the Local Health
Board has failed (wholly or in part) to satisfy any conditions imposed
in making that increase.
(7)
Where this subsection applies, the Welsh Ministers may reduce—
(a)
the allotment made to the Local Health Board for that year, or
30
(b)
when the Welsh Ministers have made an initial determination of the
amount (“the initial amount”) to be allotted for any subsequent year to
the Local Health Board under subsection (1)(b), the initial amount,

by an amount not exceeding the sum mentioned in subsection (6)(a).
(8)
An amount is allotted to a Local Health Board for a year under this section
35
when the Local Health Board is notified by the Welsh Ministers that the
amount is allotted to it for that year.
(9)
The Welsh Ministers may make an allotment under this section increasing or
reducing (subject to subsection (7)) an allotment previously so made; and the
reference to a determination in subsection (3) includes a determination made
40
with a view to increasing or reducing an allotment previously so made.
(10)
The Welsh Ministers may give directions to a Local Health Board with respect
to—
(a)
the application of sums paid to it under this section, or
(b)
the payment of sums by it to the Welsh Ministers in respect of charges
45
or other sums referable to the valuation or disposal of assets.