Previous Section Back to Table of Contents Lords Hansard Home Page


Earl Howe asked Her Majesty's Government:

Lord Hunt of Kings Heath: The regime for managing financial failure in NHS foundation trusts will safeguard the Secretary of State's overriding priority—that NHS patients continue to have access to the healthcare they need, free at the point of delivery. The regime will not underwrite institutions that have failed to deliver under the terms of their service agreements and/or licence.

Earl Howe asked Her Majesty's Government:

Lord Hunt of Kings Heath: The arrangements for borrowing by NHS foundation trusts are set out in paragraph 5.13–5.16 of A Guide to NHS Foundation Trusts.

Earl Howe asked Her Majesty's Government:

Lord Hunt of Kings Heath: NHS foundation trusts will not be allowed to use their regulated assets as security against borrowing to ensure their continuity of essential services in the event of financial failure.

Baroness Noakes asked Her Majesty's Government:

Lord Hunt of Kings Heath: The constitution of an NHS foundation trust will set out the arrangements for appointing representatives of partner organisations to the board of governors. The minimum requirements are set out in paragraph 2.17 of A Guide to NHS Foundation Trusts. As explained in paragraphs 2.17–2.23 there will be flexibility for each NHS foundation trust to decide whether to include other partner organisations, including local authority social service departments.

Baroness Noakes asked Her Majesty's Government:

Lord Hunt of Kings Heath: Yes, paragraphs 2.18-2.28 of A Guide to NHS Foundation Trusts set out clearly that NHS foundation trusts will need to establish a properly representative public and patient

14 Jan 2003 : Column WA38

membership base and set up a board of governors that is balanced and representative of the whole membership community.

Baroness Noakes asked Her Majesty's Government:

    Who will determine whether a chair or a non-executive director of a management board of a National Health Service foundation trust meets criteria laid down by the independent regulator; and what will happen if a person is elected a chair or non-executive director but does not meet those criteria.[HL730]

Lord Hunt of Kings Heath: An NHS foundation trust will set its own criteria for elections of these individuals, taking into account guidance from the independent regulator and statutory requirements. A person who does not meet the NHS foundation trust's criteria would not be eligible for election.

Baroness Noakes asked Her Majesty's Government:

    What will be the precise legal form of a National Health Service foundation trust.[HL731]

Lord Hunt of Kings Heath: NHS foundation trusts will have an organisational structure defined in law which will make them work for the public benefit. The precise form will be set out in forthcoming legislation.

Baroness Noakes asked Her Majesty's Government:

    What will be the personal legal responsibilities and duties of individuals involved in National Health Service foundation trusts as:


    (a) members of a board of governors;


    (b) chair of a board of governors;


    (c) chair of a management board;


    (d) non-executive director of a management board; and


    (e) executive member of a managment board.[HL732]

Lord Hunt of Kings Heath: The statutory responsibilities of these individuals will be set out in forthcoming legislation. Personal legal obligations may also arise from the terms of the constitution of a particular NHS foundation trust and any contract of employment that an individual has with the NHS foundation trust.

Baroness Noakes asked Her Majesty's Government:

    What resources will be available to boards of governors of National Health Service foundation hospitals to enable them to carry out their functions.[HL733]

Lord Hunt of Kings Heath: Subject to legislation, this will be a matter for the NHS foundation trust to determine.

14 Jan 2003 : Column WA39

Lord Astor of Hever asked Her Majesty's Government:

    Whether National Health Service foundation trusts will be able to transfer their existing assets as part of a private finance initiative transaction.[HL734]

Lord Hunt of Kings Heath: NHS foundation trusts will continue to be able to procure capital schemes using the PFI process, subject to the same degree of oversight as applies under current arrangements.

Lord Astor of Hever asked Her Majesty's Government:

    Whether they have made any assessment of the willingness of the private sector to lend money for capital projects to National Health Service foundation trusts in the absence of security on the related assets; and, if so, whether they will publish that assessment.[HL735]

Lord Hunt of Kings Heath: There has been widespread consultation with the financial community throughout the development of the NHS foundation trust policy. Lenders are not looking to take security over assets crucial to the provision of essential public services. NHS foundation trusts will borrow primarily on the strength of their projected cash flows.

Lord Astor of Hever asked Her Majesty's Government:

    Whether the assets that are transferred to a National Health Service foundation trust when it is established will be transferred at the amount shown in the accounts of the National Health Service trust or at a contemporaneous valuation.[HL736]

Lord Hunt of Kings Heath: Assets will be transferred at the value shown in the accounts of the predecessor NHS trust.

Lord Astor of Hever asked Her Majesty's Government:

    How they will determine what debt of a National Health Service trust is associated with particular assets that are transferred to a National Health Service foundation trust when it is established.[HL737]

Lord Hunt of Kings Heath: The intention is that on establishment an NHS foundation trust will inherit the balance sheet of its predecessor NHS trust. Assets will be transferred at the value shown in the accounts of the NHS trust.

Lord Astor of Hever asked Her Majesty's Government:

    Whether they will explain in legal terms what is meant by the creation of "a legal lock on the assets of National Health Service Foundation Trusts" as stated by the Secretary of State for Health on 11 December (HC Deb, col. 272).[HL738]

14 Jan 2003 : Column WA40

Lord Hunt of Kings Heath: NHS foundation trusts will be prevented from selling and distributing assets necessary for the continued provision of essential services.

Lord Astor of Hever asked Her Majesty's Government:

    What is meant by "public interest mandate" in paragraph 5.24 of A Guide to NHS Foundation Trusts.[HL739]

Lord Hunt of Kings Heath: Public interest mandate in this context refers to the public interest duties that will be enshrined in the licence of each NHS foundation trust that are described in paragraph 3.5 of A Guide to NHS Foundation Trusts.

Earl Howe asked Her Majesty's Government:

    What process will be used to determine the financial and other resources available to the independent regulator for National Health Service foundation hospitals.[HL742]

Lord Hunt of Kings Heath: Provision for the establishment of the independent regulator, including funding, will be set out in forthcoming legislation.

Earl Howe asked Her Majesty's Government:

    What process will be used for the appointment of the independent regulator for National Health Service foundation hospitals.[HL743]

Lord Hunt of Kings Heath: The position is explained in paragraph 3.28 of A Guide to NHS Foundation Trusts. Details will be included in forthcoming legislation.

Earl Howe asked Her Majesty's Government:

    Whether membership of a National Health Service foundation trust will be available to people who live in Scotland and Wales.[HL744]

Lord Hunt of Kings Heath: Subject to legislation, membership will be open to residents in Scotland and Wales if they meet the eligibility criteria set by an NHS foundation trust.


Next Section Back to Table of Contents Lords Hansard Home Page