Select Committee on Health Minutes of Evidence


Memorandum by Mr John Flook, Finance Director, County Durham and Darlington Health Authority (PS 47)

  1.  This note has been prepared in order to provide a response to the Health Select Committee concerning a letter (dated 2 December 1998) written by Mr Ken Jarrold, Chief Executive of County Durham and Darlington Health Authority. Mr Robin Moss referred to the letter in the course of giving evidence to the Committee on 29 October 2001.

  2.  A fully copy of the text letter is attached for information.

  3.  It will be noted that the letter refers at length to the historic under-investment in capital stock across the local health economy and uses evidence referred to by Mr John Flook in the course of his evidence to the Health Select Committee.

  4.  The essential purpose of the letter to the then Acting Regional Director is summarised in the three points listed on page 4. These were to ask the Regional Office to:

    —  support the case for a special allocation of Public Sector Capital to County Durham and Darlington from the Modernisation Fund;

    —  give priority to the particular needs of County Durham and Darlington in the allocation of available public sector capital; and

    —  support the case that revenue pressures created by our reliance on two major PFI schemes should be recognised by additional weighting within the revenue resource allocation formula.

  5.  As suggested by Mr Flook on 29 October 2001, it is clear that the letter was a bid to the Regional Office for recognition of past under-funding and for the allocation of additional resources.

  6.  The final point relating to the resource allocation formula has been subsequently addressed, in part, through the allocation of "smoothing" resources to the Trusts in a manner that excludes those funds from the Authority baseline allocation in the determination of distance from target for the purpose of the distribution of resources.

1 November 2001


 
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