To ask the Secretary of State for Social Services what is his policy towards district health authorities renting medical equipment or telephone systems or creating a capital fund; and if he will make a statement.

The National Health Service may employ renting for such items but only where it represents best overall value for money to the Exchequer as a whole. The full costs of renting must be shown to be lower than outright purchase and the Department's and, in most cases, the Treasury's approval is required. Health authorities derive capital funding from the Exchequer (and the sale of surplus property) on an annual basis.