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]
Schedule 3 — NHS trusts established under section 18
Part 2 — Powers and duties
153

Training
17
An NHS trust may—
(a)
provide training for persons employed or likely to be employed by
the NHS trust or otherwise in the provision of services under this
Act, and
5
(b)
make facilities and staff available in connection with training by a
university or any other body providing training in connection with
the health service.
Joint exercise of functions
18
An NHS trust may enter into arrangements for the carrying out, on such
10
terms as the NHS trust considers appropriate, of any of its functions jointly
with any Strategic Health Authority, Primary Care Trust, Special Health
Authority, Local Health Board or other NHS trust, or any other body or
individual.
Payment for accommodation or services
15
19    (1)
According to the nature of its functions, an NHS trust may make
accommodation or services available for patients who give undertakings (or
for whom undertakings are given) to pay any charges imposed by the NHS
trust in respect of the accommodation or services.
      (2)
An NHS trust may exercise the power conferred by sub-paragraph (1)
20
only—
(a)
to the extent that its exercise does not to any significant extent
interfere with the performance by the NHS trust of its functions or of
its obligations under NHS contracts, and
(b)
in circumstances specified in directions under section 19, with the
25
consent of the Welsh Ministers.
Additional income
20    (1)
For the purpose of making additional income available in order better to
perform its functions, an NHS trust has the powers specified in section 7(2)
of the Health and Medicines Act 1988 (c. 49) (extension of powers of Welsh
30
Ministers for financing the health service).
      (2)
The power conferred by sub-paragraph (1) may be exercised only—
(a)
to the extent that its exercise does not to any significant extent
interfere with the performance by the NHS trust of its functions or of
its obligations under NHS contracts, and
35
(b)
in circumstances specified in directions under section 19, with the
consent of the Welsh Ministers.
Provision of accommodation and services outside England and Wales
21
An NHS Trust may arrange for the provision of accommodation and
services outside England and Wales.
40

National Health Service (Wales) Bill [HL]
Schedule 3 — NHS trusts established under section 18
Part 2 — Powers and duties
154

Conferral of further powers by order
22
The Welsh Ministers may by order confer specific powers on NHS trusts,
further to those provided for by paragraphs 15 to 21.
Powers of NHS trusts to enter into externally financed development agreements
23    (1)
The powers of an NHS trust include power to enter into externally financed
5
development agreements.
      (2)
For the purposes of this paragraph, an agreement is an externally financed
development agreement if it is certified as such in writing by the Welsh
Ministers.
      (3)
The Welsh Ministers may give a certificate under this paragraph if—
10
(a)
in their opinion the purpose or main purpose of the agreement is the
provision of facilities or services in connection with the discharge by
the NHS trust of any of its functions, and
(b)
a person proposes to make a loan to, or provide any other form of
finance for, another party in connection with the agreement.
15
      (4)
If an NHS trust enters into an externally financed development agreement it
may also, in connection with that agreement, enter into an agreement with a
person who falls within sub-paragraph (3)(b) in relation to the externally
financed development agreement.
      (5)
“Another party” means any party to the agreement other than the NHS trust.
20
      (6)
The fact that an agreement made by an NHS trust has not been certified
under this paragraph does not affect its validity.
Agreements under section 50 or 64
24
An NHS trust may provide services under an agreement made under section
50 (primary medical services) or section 64 (primary dental services) and
25
may do so as a member of a qualifying body (within the meaning given by
section 51 or section 65).
Staff
25    (1)
An NHS trust may employ such staff as it considers appropriate.
      (2)
An NHS trust may—
30
(a)
pay its staff such remuneration and allowances, and
(b)
employ them on such other terms and conditions,

as it considers appropriate.
      (3)
An NHS trust must—
(a)
in exercising its powers under sub-paragraph (2), and
35
(b)
otherwise in connection with the employment of its staff,

act in accordance with regulations and any directions given by the Welsh
Ministers.
      (4)
Before making any regulations under sub-paragraph (3), the Welsh
Ministers must consult such bodies as they may recognise as representing
40
persons who, in their opinion, are likely to be affected by the regulations.

National Health Service (Wales) Bill [HL]
Schedule 3 — NHS trusts established under section 18
Part 3 — Dissolution
155

Pensions, etc.
26    (1)
An NHS trust may, for or in respect of such of its employees as it may
determine, make arrangements for providing pensions, allowances or
gratuities.
      (2)
Such arrangements may include the establishment and administration, by
5
the NHS trust or otherwise, of one or more pension schemes.
      (3)
The reference in sub-paragraph (1) to pensions, allowances or gratuities to
or in respect of employees of an NHS trust includes a reference to pensions,
allowances or gratuities by way of compensation to or in respect of any of
the NHS trust’s employees who suffer loss of office or employment or loss
10
or diminution of emoluments.
      (4)
This paragraph does not affect the generality of paragraphs 14 and 25.
Compulsory acquisition
27    (1)
An NHS trust may be authorised to purchase land compulsorily for the
purposes of its functions by means of an order made by the NHS trust and
15
confirmed by the Welsh Ministers.
      (2)
Subject to sub-paragraph (3), the Acquisition of Land Act 1981 (c. 67) applies
to the compulsory purchase of land under this paragraph.
      (3)
No order may be made by an NHS trust under Part 2 of the Acquisition of
Land Act 1981 with respect to any land unless the proposal to acquire the
20
land compulsorily—
(a)
has been submitted to the Welsh Ministers in such form and together
with such information as they may require, and
(b)
has been approved by them.
Part 3
25
Dissolution
28    (1)
The Welsh Ministers may by order dissolve an NHS trust.
      (2)
An order under this paragraph may be made—
(a)
on the application of the NHS trust concerned, or
(b)
if the Welsh Ministers consider it appropriate in the interests of the
30
health service.
      (3)
Except where it appears to the Welsh Ministers necessary to make an order
under this paragraph as a matter of urgency, no such order may be made
until after the completion of such consultation as may be prescribed.
29    (1)
If an NHS trust is dissolved under paragraph 28, the Welsh Ministers may
35
by order transfer, or provide for the transfer, to themselves or an NHS body
of such of the property and liabilities of the NHS trust which is dissolved as
in the opinion of the Welsh Ministers is appropriate; and any such order may
include provisions corresponding to those of paragraph 9.
      (2)
The liabilities which may be transferred by virtue of sub-paragraph (1) to an
40
NHS body include criminal liabilities.

National Health Service (Wales) Bill [HL]
Schedule 3 — NHS trusts established under section 18
Part 4 — Miscellaneous
156

      (3)
An order under this paragraph may make provision in connection with the
transfer of staff employed by or for the purposes of the NHS trust which is
dissolved; and such an order may include provisions corresponding to those
of paragraph 8, including provision for the making of a scheme by such
Strategic Health Authority, Special Health Authority, Local Health Board or
5
other body as may be specified in the order.
      (4)
No order may be made under this paragraph until after completion of such
consultation as may be prescribed.
30    (1)
If an NHS trust is dissolved under paragraph 28, the Welsh Ministers or such
other NHS trust, Strategic Health Authority, Primary Care Trust, Special
10
Health Authority or Local Health Board as the Welsh Ministers may direct
must undertake the responsibility for the continued payment of any such
pension, allowances or gratuities as, by virtue of paragraph 11(2) or
paragraph 26, would otherwise have been the responsibility of the NHS
trust which has been dissolved.
15
      (2)
Sub-paragraph (1) does not affect the generality of paragraph 29.
31
An NHS trust may not be dissolved or wound up except in accordance with
paragraph 28.
Part 4
Miscellaneous
20
Use and development of consecrated land and burial grounds
32
Section 128 of the Town and Country Planning Act 1971 (c. 78) (use and
development of consecrated land and burial grounds) applies to consecrated
land and land comprised in a burial ground, within the meaning of that
section, which an NHS trust holds for any of its purposes as if—
25
(a)
that land had been acquired by the NHS trust as mentioned in
subsection (1) of that section, and
(b)
the NHS trust were a statutory undertaker, within the meaning of
that Act.
Instruments etc.
30
33    (1)
The fixing of the seal of an NHS trust must be authenticated by the
signature—
(a)
of the chairman or of some other person authorised (whether
generally or specifically) by the NHS trust for that purpose, and
(b)
of one other director.
35
      (2)
A document purporting to be duly executed under the seal of an NHS trust
must be received in evidence and must, unless the contrary is proved, be
taken to be so executed.
      (3)
A document purporting to be signed on behalf of an NHS trust must be
received in evidence and must, unless the contrary is proved, be taken to be
40
so signed.

National Health Service (Wales) Bill [HL]
Schedule 4 — Financial provision about NHS trusts established under section 18
157

Interpretation
34
In this Schedule—
“provide” includes manage,
“operational date” has the meaning given by paragraph 5(5).
Schedule 4
5
Section 21

Financial provision about NHS trusts established under section 18
Originating capital of NHS trusts
1     (1)
Each NHS trust has an originating capital of an amount specified in an order
made by the Welsh Ministers.
      (2)
The originating capital of an NHS trust is an amount representing the excess
10
of the valuation of its assets over the amounts of its liabilities.
      (3)
In determining the originating capital of an NHS trust, there must be left out
of account such assets or liabilities as are, or are of a class, determined for the
purposes of this paragraph by the Welsh Ministers with the consent of the
Treasury.
15
      (4)
An NHS trust’s originating capital is deemed to have been issued out of
moneys paid out of the Welsh Consolidated Fund and is an asset of the
Welsh Consolidated Fund.
      (5)
An NHS trust’s originating capital is public dividend capital.
      (6)
With the consent of the Treasury, the Welsh Ministers may determine—
20
(a)
the dividend which is payable at any time on any public dividend
capital issued, or treated as issued, to an NHS trust under this Act,
(b)
the amount of any such public dividend capital which must be
repaid at any time,
(c)
any other terms on which any public dividend capital is so issued, or
25
treated as issued.
      (7)
An order under sub-paragraph (1) may be made only with the consent of the
Treasury.
      (8)
In this paragraph—
“assets” means the assets which, on or in connection with the
30
establishment of the NHS trust, are or will be transferred to it
(whether before, on or after its operational date), and
“liabilities” means the liabilities which are or will be so transferred.
Financial obligations of NHS trusts
2     (1)
Each NHS trust must ensure that its revenue is not less than sufficient,
35
taking one financial year with another, to meet outgoings properly
chargeable to revenue account.
      (2)
Each NHS trust must achieve such financial objectives as may from time to
time be set by the Welsh Ministers with the consent of the Treasury and as
are applicable to it.
40

National Health Service (Wales) Bill [HL]
Schedule 4 — Financial provision about NHS trusts established under section 18
158

      (3)
Any such objectives may be made applicable to NHS trusts generally, or to
a particular NHS trust or to NHS trusts of a particular description.
Borrowing
3     (1)
For the purpose of its functions an NHS trust may borrow (both temporarily,
by way of overdraft, and longer term) from the Welsh Ministers or from any
5
other person.
      (2)
Sub-paragraph (1) is subject to any direction given by the Welsh Ministers
under section 19, to the provisions of this paragraph and to any limit
imposed under this Schedule.
      (3)
An NHS trust may not mortgage or charge any of its assets or in any other
10
way use any of its assets as security for a loan.
      (4)
The Welsh Ministers must determine the terms of any loan made by them to
an NHS trust (including terms as to the payment of interest, if any).
Guarantees of borrowing
4     (1)
The Welsh Ministers may guarantee, in such manner and on such conditions
15
as they consider appropriate the repayments of the principal of, and the
payment of interest on, any sums which an NHS trust borrows from a
person other than the Welsh Ministers.
      (2)
Immediately after a guarantee is given under this paragraph, a statement of
the guarantee must be laid before the National Assembly for Wales.
20
      (3)
Where any sum is issued for fulfilling a guarantee so given, a statement
relating to that sum must be laid before the National Assembly for Wales as
soon as possible after the end of each financial year beginning with that in
which the sum is issued and ending with that in which all liability in respect
of the principal of the sum and in respect of interest on it is finally
25
discharged.
      (4)
If any sums are issued in fulfilment of a guarantee given under this
paragraph, the NHS trust concerned must make to the Welsh Ministers, at
such times and in such manner as they may from time to time direct—
(a)
payments of such amounts as the Welsh Ministers so direct in or
30
towards repayment of the sums so issued, and
(b)
payments of interest, at such rates as the Welsh Ministers so direct,
on what is outstanding for the time being in respect of sums so
issued.
Limits on indebtedness
35
5
The aggregate of all sums borrowed by NHS trusts which are required to
provide or manage services at or from hospitals or other establishments or
facilities which are situated in Wales must not exceed £300 million or such
other sum not exceeding £600 million as may be specified by order made by
the Welsh Ministers.
40

National Health Service (Wales) Bill [HL]
Schedule 5 — Special Health Authorities established under section 22
159

Additional public dividend capital
6
The Welsh Ministers may, with the consent of the Treasury, instead of
making a loan to an NHS trust under paragraph 3, pay an amount to the
NHS trust as public dividend capital.
Supplementary payments
5
7     (1)
The Welsh Ministers may make a payment to an NHS trust.
      (2)
The payment may be subject to such conditions as they consider
appropriate, including conditions as to repayment.
Surplus funds
8     (1)
If it appears to the Welsh Ministers that any sum held by an NHS trust
10
otherwise than as trustee is surplus to its foreseeable requirements, the trust
must, if the Welsh Ministers after consultation with the NHS trust so direct,
pay that sum to the Welsh Ministers.
      (2)
Sub-paragraph (1) applies only where the NHS trust is established to assume
responsibility for the ownership and management of, or to provide and
15
manage, hospitals or other establishments or other facilities which are
situated in Wales; otherwise, the payment must be made to the Consolidated
Fund.
Investment
9     (1)
An NHS trust has power to invest money held by it in any investments,
20
including investments which do not produce income, specified in directions
under section 19.
      (2)
Sub-paragraph (1) does not apply in relation to money held by an NHS trust
as trustee.
10
Any direction under section 19 with respect to the maximum amount which
25
an NHS trust may invest in any investments or class of investments may be
given only with the consent of the Treasury.
Schedule 5
Section 22

Special Health Authorities established under section 22
Corporate status
30
1
Each Special Health Authority is a body corporate.
Pay and allowances
2     (1)
The Welsh Ministers may pay to—
(a)
the chairman of a Special Health Authority, and
(b)
any member of a Special Health Authority who is appointed by the
35
Welsh Ministers,

such remuneration as the Welsh Ministers may determine.