asked Her Majesty's Government:

My Lords, health authorities already raise income in a variety of ways and we are currently seeking powers in the Health and Medicines Bill, which will come before your Lordships shortly, to enhance their ability to do this. The income generation unit, which will start work early in the new financial year, will help authorities to obtain the maximum benefit from both existing and new powers.

My Lords, I thank my noble friend for his enlightening reply. Can he explain how this exciting and promising new scheme will operate?

My Lords, the income generation unit, to which I referred in my original Answer, has been set up to establish good practice in the income generation field and to help, develop and disseminate new opportunities. It will be headed by Mr. Ron Kerr, currently a district general manager in the North Hertfordshire District Health Authority and will be staffed by a mixture of seconded National Health Service employees and civil servants. It will be up and running early in the new financial year. We expect the income generation to increase funding for the health service by approximately £10 million to £20 million in 1988–89, rising over three years to over £70 million a year.

My Lords, Clause 4(1)(d) of the Health and Medicines Bill empowers the Secretary of State to supply services to any person and to provide new services. Can the noble Lord say whether that means that health authorities will be able to run an NHS pharmacy on hospital premises, open to the general public but outside the remit of the pharmaceutical sub-committee, under the recently re-negotiated pharmacies contract?

My Lords, it is a very wide power to which the noble Lord has drawn attention. I believe it would be better to discuss it during the period given over to discussion of the Health and Medicines Bill rather than now.

My Lords, does not the noble Lord agree that however successful the new income generation scheme may be, it is unlikely to do much to solve the current grave problems of underfunding in the NHS?

My Lords, every little extra is welcome, as I am sure the noble Lord will agree. I can confirm that health authorities will be able to keep the money they raise.

My Lords, can the Minister say who will be responsible at local hospital level for this fantastic scheme of income generation which could be described in other words?

My Lords, I expect that those hospitals that decide to go in for the scheme in a big way would need an extra person in order to carry it out.

My Lords, perhaps I missed it, but can the Minister tell me the date when the scheme is thought to be coming into operation?

My Lords, not specifically. The income generation unit will be up and running early in the new financial year. As regards the extra powers under the Health and Medicines Bill, they will depend on the date of Royal Assent.

My Lords, does that mean that the scheme will not come into operation until the Bill receives Royal Assent?

My Lords, that is not a reason, however, why planning should not be conducted.