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 3 — Local authorities and the NHS
18

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Power of local authorities to make payments
(1)
A local authority may make payments to a Strategic Health Authority, a
Primary Care Trust or a Local Health Board towards expenditure incurred or
to be incurred by the body in connection with the performance by it of
prescribed functions.
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(2)
A payment under this section may be made in respect of expenditure of a
capital or of a revenue nature or in respect of both kinds of expenditure.
(3)
The Welsh Ministers may by directions prescribe conditions relating to
payments under this section.
(4)
The power under subsection (3) may in particular be exercised so as to require,
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in such circumstances as may be specified—
(a)
repayment of the whole or part of a payment under this section, or
(b)
in respect of property acquired with payments under this section,
payment of an amount representing the whole or part of an increase in
the value of the property which has occurred since its acquisition.
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(5)
No payment may be made under this section in respect of any expenditure
unless the conditions relating to it conform with the conditions prescribed for
payments of that description under subsection (3).
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Care Trusts
(1)
Where—
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(a)
an NHS trust is, or will be, a party to any existing or proposed LA
delegation arrangements, and
(b)
the Welsh Ministers consider that designation of the NHS trust as a
Care Trust would be likely to promote the effective exercise by the NHS
trust of prescribed health-related functions of a local authority (in
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accordance with the arrangements) in conjunction with prescribed
NHS functions of the NHS trust,

the Welsh Ministers may designate the NHS trust as a Care Trust.
(2)
An NHS trust may, however, be designated only in pursuance of an
application made to the Welsh Ministers jointly by each prescribed body.
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(3)
If the application under subsection (2) requests the Welsh Ministers to do so,
they may when designating an NHS trust as a Care Trust make a direction
under subsection (4).
(4)
The direction is that, while it is designated, the NHS trust may (in addition to
exercising health-related functions of the local authority as mentioned in
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subsection (1)(b)) exercise such prescribed health-related functions of the local
authority as are specified in the direction in relation to persons in any area so
specified, even though it does not exercise any NHS functions in relation to
persons in that area.
(5)
Where an NHS trust is designated as a Care Trust under this section—
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(a)
its designation may be revoked by the Welsh Ministers at any time—
(i)
of their own motion, and
(ii)
after such consultation as they consider appropriate,
(b)
if an application for the revocation of its designation is made to the
Welsh Ministers by one or more of the parties to the LA delegation
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National Health Service (Wales) Bill [HL]
Part 3 — Local authorities and the NHS
19

arrangements, its designation must be revoked by the Welsh Ministers
at the earliest time at which they consider it practicable to do so, having
regard, in particular, to any steps that need to be taken in relation to
those arrangements in connection with the revocation.
(6)
The designation of an NHS trust as a Care Trust under this section must be
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effected by an order under section 18 which—
(a)
(in the case of an existing NHS trust) amends the order establishing the
NHS trust so as to change its name to one that includes the words “Care
Trust”, or
(b)
(in the case of a new NHS trust) establishes the NHS trust with a name
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that includes those words,

and any revocation of its designation must be effected by a further order under
section 18 which makes such provision for changing the name of the NHS trust
as the Welsh Ministers consider expedient.
(7)
The power of the Welsh Ministers to dissolve an NHS trust includes power to
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dissolve an NHS trust where they consider that it is appropriate to do so in
connection with the designation of any other NHS trust (whether existing or
otherwise) as a Care Trust.
(8)
Regulations may make such incidental, supplementary or consequential
provision (including provision amending, repealing or revoking enactments)
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as the Welsh Ministers consider expedient in connection with the preceding
provisions of this section.
(9)
Regulations under subsection (8) may, in particular, make provision—
(a)
prescribing—
(i)
the manner and circumstances in which, and
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(ii)
any conditions which must be satisfied before,

an application may be made for an NHS trust to be designated as a Care
Trust under this section, or to cease to be so designated, and the
information to be supplied with such an application,
(b)
enabling the Welsh Ministers to terminate appointments of persons as
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members of the board of directors of an NHS trust (or of a committee of
such a trust) where they consider that it is appropriate to do so in
connection with the designation of the NHS trust as a Care Trust,
(c)
requiring the consent of the Welsh Ministers to be obtained before any
prescribed change is made with respect to the governance of an NHS
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trust so designated,
(d)
for supplementing or modifying, in connection with the operation of
subsection (3), any provision made by regulations under section 33.
(10)
The designation of an NHS trust as a Care Trust under this section does not
affect any of the functions, rights or liabilities of that NHS trust in its capacity
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as an NHS trust.
(11)
In connection with the exercise by an NHS trust so designated of any relevant
social services functions under LA delegation arrangements—
(a)
section 7 of the Local Authority Social Services Act 1970 (c. 42)
(authorities to exercise social services functions under guidance), and
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(b)
section 7A of that Act (directions as to exercise of such functions),

apply to the NHS trust as if it were a local authority within the meaning of that
Act.

National Health Service (Wales) Bill [HL]
Part 3 — Local authorities and the NHS
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(12)
In this section—
“health-related functions” has the meaning given by section 33(8),
“LA delegation arrangements” means arrangements falling within section
33(2)(b), whether or not made in conjunction with any pooled fund
arrangements,
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“NHS functions” means functions exercisable by an NHS trust in its
capacity as such,
“pooled fund arrangements” means arrangements falling within section
33(2)(a),
“relevant social services functions” means health-related functions which
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are social services functions within the meaning of the Local Authority
Social Services Act 1970 (c. 42).
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Directed partnership arrangements
(1)
If the Welsh Ministers are of the opinion—
(a)
that a body to which this section applies (“the failing body”) is not
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exercising any of its functions adequately, and
(b)
that it would be likely to lead to an improvement in the way in which
that function is exercised if it were to be exercised—
(i)
by another body to which this section applies under delegation
arrangements, or
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(ii)
in accordance with pooled fund arrangements made with
another such body,

the Welsh Ministers may direct those bodies to enter into such delegation
arrangements or pooled fund arrangements in relation to the exercise of the
appropriate function or functions as are specified in the direction.
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(2)
In subsection (1) “the appropriate function or functions” means—
(a)
the function of the failing body mentioned in that subsection, and
(b)
such other function of that body (if any) as the Welsh Ministers
consider would, if exercised under or in accordance with the
arrangements in question, be likely to contribute to an improvement in
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the exercise of the function referred to in paragraph (a).
(3)
The bodies to which this section applies are—
(a)
Strategic Health Authorities,
(b)
Primary Care Trusts,
(c)
NHS trusts,
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(d)
Local Health Boards, and
(e)
local authorities,

but in subsections (1) and (2) any reference to functions is, in relation to a local
authority, a reference only to relevant social services functions of the authority.
(4)
In this section any reference to an improvement in the way in which any
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function is exercised includes an improvement in the provision to any
individuals of any services to which that function relates.
(5)
In this section—
“delegation arrangements” means arrangements falling within section
33(2)(b) or (2)(c), whether or not made in conjunction with any pooled
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fund arrangements,
“health-related functions” has the meaning given by section 33(8),

National Health Service (Wales) Bill [HL]
Part 3 — Local authorities and the NHS
21

“pooled fund arrangements” means arrangements falling within section
33(2)(a),
“relevant social services functions” means health-related functions which
are social services functions within the meaning of the Local Authority
Social Services Act 1970 (c. 42).
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Further provisions about directions and directed partnership arrangements
(1)
A direction under section 36(1) (a “principal direction”) may make provision
with respect to—
(a)
any of the matters with respect to which provision is required to be
made by the specified arrangements by virtue of regulations under
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section 33, and
(b)
such other matters as the Welsh Ministers consider appropriate.
(2)
The Welsh Ministers may in particular (either in a principal direction or in any
subsequent direction) make provision—
(a)
for the determination, whether—
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(i)
by agreement, or
(ii)
(in default of agreement) by the Welsh Ministers or an arbitrator
appointed by them,

of the amount of any payments which need to be made by one body to
another for the purposes of the effective operation of the specified
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arrangements, and for the variation of any such determination,
(b)
specifying the manner in which the amount of any such payments must
be so determined (or varied),
(c)
requiring a body specified in the direction to supply to the Welsh
Ministers or an arbitrator, for the purpose of enabling any such amount
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to be so determined (or varied), such information or documents as may
be so specified,
(d)
requiring any amount so determined (or varied) to be paid by and to
such bodies as are specified in the direction,
(e)
requiring capital assets specified in the direction to be made
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available by and to such bodies as are so specified.
(3)
The Welsh Ministers may, when giving a principal direction to any bodies to
which section 36 applies, give such directions to any other such body as they
consider appropriate for or in connection with securing that full effect is given
to the principal direction.
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(4)
Before giving a principal direction to any bodies to which section 36 applies,
the Welsh Ministers may—
(a)
direct either or both of the bodies in question to take such steps
specified in the direction, or
(b)
give such other directions,
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as the Welsh Ministers consider appropriate with a view to enabling them to
determine whether the principal direction should be given.
(5)
The revocation of a principal direction does not affect the continued operation
of the specified arrangements.
(6)
“The specified arrangements”, in relation to a principal direction, means the
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arrangements specified in the direction in pursuance of section 36(1).