Mr Simon Burns (West Chelmsford, Conservative)

I beg to move amendment No. 459, in

clause 22, page 8, line 36, leave out from beginning to second 'for' and insert

'An NHS foundation trust may appoint trustees which the regulator can approve'.

Again, I can be brief. In many ways this is a probing amendment. As hon. Members will see, clause 22 deals with the appointment of trustees for an NHS foundation trust to hold property on trust. I do not think that anyone in the Committee would regard that as an unusual or unreasonable proposition. The amendment seeks to change significantly who appoints the trustees, from the Secretary of State to the NHS foundation trust. Given that it is the foundation trust's property, it would be a reasonable proposition for the foundation trust to make the appointment and to have some check on the power to allow the regulator to approve the trustees.

The NHS foundation trusts would appoint the trustees and they would be subject to the approval of the regulator, which is more logical and fair than for the Secretary of State to do so. Unless there is some complicated legal reason under existing law, I am not sure why the Secretary of State has to have a role. The important thing is that there are trustees; given that one concedes that that is crucial, surely it would be better for the foundation trust to make the appointments, subject to the approval of the regulator, who will be independent of the foundation trust, rather than the Secretary of State.

Mr John Hutton (Minister of State, Department of Health; Barrow & Furness, Labour)

I understand the hon. Gentleman's argument that the Secretary of State should not be involved in the appointment of trustees for NHS foundation trusts. My right hon. Friend currently makes appointments of charitable trustees to NHS trusts. I reassure the hon. Gentleman that the appointments function will be delegated to the NHS Appointments Commission, as it is now.

However, safeguards are needed to ensure that the charitable funds held by NHS foundation trusts are properly administered. That includes ensuring that the charitable assets are used to provide benefits for patients and for the purposes for which they were intended. For all but relatively small funds, that means that there should be independently appointed trustees to administer the funds and the appropriate body to appoint the trustees is the NHS Appointments Commission, which has the necessary expertise and independence. I give the hon. Gentleman my absolute assurance that it is not a back-door way in for my right hon. Friend to control the assets of NHS foundation trusts. The Secretary of State does not have a direct role in that regard. The proposal is a continuation of existing arrangements, with the added bonus of delegating the appointments function to the NHS Appointments Commission.

Mr Simon Burns (West Chelmsford, Conservative)

I am grateful for the Minister's explanation, which I accept. I assure him that I did not think that the proposal was a Machiavellian way of giving the Secretary of State back-door powers to control property. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendment made: No. 257, in

clause 22, page 8, line 39, leave out 'in England'.—[Mr. Hutton.]

Clause 22, as amended, ordered to stand part of the Bill.