Health and Medicines Act 1988

JurisdictionUK Non-devolved
Citation1988 c. 49


Health and Medicines Act1988

1988 CHAPTER 49

An Act to make further provision in relation to the National Health Service, the testing of sight and instruction in matters relating to health and welfare; to amend the Medicines Act 1968 and the Medicines Act 1971 and to empower the Secretary of State to make regulations about HIV testing kits and services.

[15th November 1988]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

The General Practice Finance Corporation etc.

The General Practice Finance Corporation etc.

S-1 Vesting of property etc. of Corporation in a company nominated by the Secretary of State and dissolution of Corporation.

1 Vesting of property etc. of Corporation in a company nominated by the Secretary of State and dissolution of Corporation.

(1) The Secretary of State may by order made by statutory instrument provide that on a day specified in the order all the property, rights and liabilities to which the General Practice Finance Corporation (‘the Corporation’) was entitled or subject immediately before that date or all such property, rights and liabilities other than property, rights or liabilities specified in the order, shall become by virtue of the order property, rights and liabilities of a company nominated for the purposes of this section by the Secretary of State (in this Act referred to as ‘the successor company’).

(2) The transfer may be on such terms (including terms as to the payment of money to the Secretary of State) as the Secretary of State thinks fit.

(3) The Secretary of State shall have power, with the consent of the Treasury, to acquire, hold and dispose of stocks, shares or other securities of the successor company or rights to subscribe for any such securities.

(4) The Secretary of State, with the consent of the Treasury, may use—

(a) sums received by him under subsection (2) above; and

(b) dividends or other sums received by him in right of, or on the disposal of, any securities or rights acquired under this section,

for discharging liabilities of the Corporation or the successor company.

(5) Shares issued to the Secretary of State in connection with the vesting of property, rights and liabilities in the successor company by virtue of subsection (1) above shall be issued as fully paid and treated for the purposes of the Companies Act 1985 as if they had been fully paid up by virtue of the payment to the successor company of their nominal value in cash.

(6) The Secretary of State may by order made by statutory instrument not later than the day on which an order is made under subsection (1) above provide that such provisions of the memorandum or articles of association of the successor company as may be specified shall not be alterable without his approval.

(7) Nothing in subsection (6) above shall be construed as limiting the operation of section 14 of the Interpretation Act 1978 (implied power to amend) so far as that section relates to the revocation of an order under subsection (6) above.

(8) The Secretary of State may by order made by statutory instrument provide that provisions of the memorandum or articles of association of the successor company which have been specified in an order under subsection (6) above shall be alterable without his approval.

(9) On such day as the Secretary of State may by order made by statutory instrument appoint the Corporation shall cease to exist.

(10) An order under subsection (9) above may make such provision as the Secretary of State thinks fit with regard to the disposal of the Corporation's assets and the discharge of its liabilities.

(11) A statutory instrument containing an order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(12) Sums required by the Secretary of State for the purposes of this section shall be paid out of money provided by Parliament.

(13) Subject to subsection (4) above, there shall be paid into the Consolidated Fund—

(a) any sums received by the Secretary of State under subsection (2) above; and

(b) any dividends or other sums received by him in right of, or on the disposal of, any securities or rights acquired under this section.

(14) Schedule 1 to this Act shall have effect for the purpose of supplementing the provisions of this section.

S-2 Powers of Secretary of State.

2 Powers of Secretary of State.

(1) The Secretary of State may by regulations made by statutory instrument with the consent of the Treasury make provision—

(a) for guaranteeing the whole or any part of the liability incurred by any person for payments in respect of a loan made to that person in connection with premises to be wholly or partly used by that person for the provision of general medical services under Part II of the National Health Service Act 1977 or Part II of the National Health Service (Scotland) Act 1978 ; and

(b) for indemnifying a person who has made such a loan to such a person against the whole or any part of any loss arising in connection with the loan.

(2) Sums required to fulfil a guarantee or indemnity under this section shall be paid out of money provided by Parliament.

(3) A statutory instrument containing regulations under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(4) Any power conferred on the Secretary of State by the articles of association of the successor company shall be exercisable in the national interest notwithstanding any rule of law and the provisions of any enactment.

S-3 Corporation's powers pending dissolution.

3 Corporation's powers pending dissolution.

(1) The following section shall be inserted after section 2 of the National Health Service Act 1966

S-2A

2A ‘Further powers.

2A. The Corporation shall have power—

(a) for valuable consideration to assign the benefit of a contract for a loan or to extinguish, or vary, by agreement an obligation under a contract for a loan;

(b) to sell any interest in land;

(c) to facilitate and arrange loans to persons such as are mentioned in section 2(1) above from persons other than the Corporation;

(d) to make loans jointly with other persons;

(e) to make arrangements with other persons for the purchase jointly with the Corporation of premises or other land such as are mentioned in section 2(1) above; and

(f) to arrange for persons other than the Corporation to purchase such land or premises and grant leases of such land or premises to persons such as are mentioned in that subsection.’

(2) The Secretary of State may by direction—

(a) prohibit the making by the Corporation after a date specified in the direction of offers to lend money;

(b) prohibit the making of loans by the Corporation after a date so specified; and

(c) make any prohibition contained in a direction under this subsection subject to such exceptions as may be specified in it.

(3) In section 6(3) of the National Health Service Act 1966 (Corporation's borrowing powers) for ‘150 million’ there shall be substituted ‘160 million’.

Provisions relating to the successor company

Provisions relating to the successor company

S-4 Treasury guarantees.

4 Treasury guarantees.

(1) At any time when the successor company is wholly owned by the Crown the Treasury may guarantee, in such manner and on such conditions as they think fit, the redemption or repayment of any stock issued or temporary loan raised by the successor company and the payment of interest on any such stock or loan.

(2) Immediately after any guarantee is given under this section the Treasury shall lay a statement of the guarantee before each House of Parliament, and where any sum is issued for fulfilling such a guarantee or a guarantee such as is mentioned in subsection (6) below the Treasury shall, as soon as possible after the end of each financial year beginning with that in which the sum is issued and ending with that in which all liability in respect of the principal of the sum and in respect of interest thereon is finally discharged, lay before each House of Parliament a statement relating to that sum.

(3) Any sums required by the Treasury for fulfilling any guarantee given or treated as given under this section shall be charged on and issued out of the Consolidated Fund.

(4) If any sums are issued in fulfilment of any guarantee given or treated as given under this section, the successor company shall make to the Treasury, at such times and in such manner as the Treasury may from time to time direct, payments of such amounts as the Treasury may direct in or towards repayment of the sums so issued and payments of interest on what is outstanding for the time being in respect of sums so issued at such rates as the Treasury may direct.

(5) Any sums received by the Treasury under this section shall be paid into the Consolidated Fund.

(6) Any guarantee given by the Treasury under section 7 of the National Health Service Act 1966 with respect to a liability of the Corporation which becomes a liability of the successor company by virtue of section 1 above shall be treated as if it were a guarantee given under this section.

(7) Any guarantee given or treated as given under this section shall be extinguished when the successor company ceases to be wholly owned by the Crown.

(8) The successor company shall be regarded for the purposes of this Act as wholly owned by the Crown at any time when each of the issued shares in the company and...

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