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District Health Authorities

Volume 173: debated on Thursday 24 May 1990

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To ask the Secretary of State for Wales what conditions attach to the use by district health authorities, when they sell land or buildings which they own, of capital receipts; and if he will make a statement.

I refer the hon. Gentleman to the reply I gave him on 21 May 1990 and to the reply given to the hon. Member for Bridgend (Mr. Griffiths) on 30 April 1990.

To ask the Secretary of State for Wales what guidelines have been given to district health authorities in Wales in relation to their revenue performance related to their total asset base; and if he will make a statement.

Health authorities have a statutory obligation to manage both their revenue and capital within the cash provision allocated to them each year by my right hon. Friend. Additionally, they are required to commit at least 7·5 per cent. of their overall resource provision to the maintenance of capital assets. They are also required to submit performance reports for specific specialties and services against targets set by reference, as appropriate, to centrally prescribed strategic guidelines, published performance indicators and locally determined priorities within the framework of their financial plans. Authorities are also required to achieve in 1990–91 cash-releasing cost improvements in their delivery of services of at least 1·1 per cent. of their recurring revenue provision and to generate additional recurring income equivalent to a further 0·2 per cent. of their recurrent revenue resources; and those authorities which failed to meet equivalent targets last year will be expected to make up the shortfall in 1990–91 as well as achieving this year's minimum targets.