Clause 23 - Financial arrangements for consortia

Health and Social Care (Re-Committed) Bill – in a Public Bill Committee at 8:00 pm on 5 July 2011.

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Amendments made: 141, in clause 23, page 40, line 41  leave out ‘general’ and insert ‘expenditure’.

Amendment 142, in clause 23, page 41, line 24, leave out from beginning to end of line 10 on page 42 and insert—

‘(1) For the purposes of this section and section 223JA—

(a) a commissioning consortium’s capital resource use, in relation to a financial year, means the consortium’s use of capital resources in that year, and

(b) a commissioning consortium’s revenue resource use, in relation to a financial year, means the consortium’s use of revenue resources in that year.

(2) A commissioning consortium must ensure that its capital resource use in a financial year does not exceed the amount specified by direction of the Board.

(3) A commissioning consortium must ensure that its revenue resource use in a financial year does not exceed the amount specified by direction of the Board.

(4) Any directions given in relation to a financial year under subsection (6) of section 223DA apply (in relation to that year) for the purposes of this section as they apply for the purposes of that section.

(5) The Board may by directions make provision for determining to which consortium a use of capital resources or revenue resources is to be attributed for the purposes of this section or section 223JA.

(6) Where the Board gives a direction under subsection (2) or (3), it must notify the Secretary of State.

223JA Financial duties of consortia: additional controls on resource use

‘(1) The Board may direct a commissioning consortium to ensure that its capital resource use in a financial year which is attributable to matters specified in the direction does not exceed an amount so specified.

(2) The Board may direct a commissioning consortium to ensure that its revenue resource use in a financial year which is attributable to matters specified in the direction does not exceed an amount so specified.

(3) The Board may direct a commissioning consortium to ensure that its revenue resource use in a financial year which is attributable to prescribed matters relating to administration does not exceed an amount specified in the direction.

(4) The Board may give directions, in relation to a financial year, specifying uses of capital resources or revenue resources which must, or must not, be taken into account for the purposes of subsection (1) or (as the case may be) subsection (2) or (3).

(5) The Board may not exercise the power conferred by subsection (1) or (2) in relation to particular matters unless the Secretary of State has given a direction in relation to those matters under subsection (1) of section 223DB or (as the case may be) subsection (2) of that section.

(6) The Board may not exercise the power conferred by subsection (3) in relation to prescribed matters relating to administration unless the Secretary of State has given a direction in relation to those matters under subsection (3)(a) of section 223DB.’.

Amendment 143, in clause 23, page 42, line 11, leave out ‘performance’ and insert ‘quality’.

Amendment 144, in clause 23, page 42, line 13, leave out from ‘consortium’ to end of line 15.

Amendment 145, in clause 23, page 42, line 15, at end insert—

‘(1B) For the purpose of determining whether to make a payment under subsection (1) and (if so) the amount of the payment, the Board must take into account at least one of the following factors—

(a) the quality of relevant services provided during the financial year;

(b) any improvement in the quality of relevant services provided during that year (in comparison to the quality of relevant services provided during previous financial years);

(c) the outcomes identified during the financial year as having been achieved from the provision at any time of relevant services;

(d) any improvement in the outcomes identified during that financial year as having been so achieved (in comparison to the outcomes identified during previous financial years as having been so achieved).

(1C) For that purpose, the Board may also take into account either or both of the following factors—

(a) relevant inequalities identified during that year;

(b) any reduction in relevant inequalities identified during that year (in comparison to relevant inequalities identified during previous financial years).

(1D) Regulations may make provision as to the principles or other matters that the Board must or may take into account in assessing any factor mentioned in subsection (1B) or (1C).

(1E) Regulations mayt provide that, in prescribed circumstances, the Board may, if it considers it appropriate to do so—

(a) not make a payment that would otherwise be made to a consortium under subsection (1), or

(b) reduce the amount of such a payment.

(1F) Regulations may make provision as to how payments under subsection (1) may be spent (which may include provision as to circumstances in which the whole or part of any such payments may be distributed to members of the commissioning consortium).

(1G) A commissioning consortium must publish an explanation of how the consortium has spent any payment made to it under subsection (1).

(1H) In this section—

“relevant services” means services provided in pursuance of arrangements made by the consortium—

(a) under section 3 or 3A or Schedule 1, or

(b) by virtue of section 7A or 12;

“relevant inequalities” means inequalities between the persons for whose benefit relevant services are at any time provided with respect to—

(a) their ability to access the services, or

(b) the outcomes achieved for them by their provision.’.

Amendment 146, in clause 23, page 42, line 16, leave out from beginning to end of line 3 on page 43.—(Mr Simon Burns.)

Question put, (single Question on successive provisions of the Bill), That clause 23, as amended, and clauses 24, 28 and 29 stand part of the Bill.  

The Committee divided: Ayes 12, Noes 10.

Division number 14 Decision Time — Clause 23 - Financial arrangements for consortia

Aye: 10 MPs

No: 12 MPs

Aye: A-Z by last name

No: A-Z by last name

Question accordingly agreed to.

Clause 23, as amended, ordered to stand part of the Bill.

Clauses 24, 28 and 29, ordered to stand part of the Bill.