Statutory Instruments
1998 No. 500

NATIONAL HEALTH SERVICE, ENGLAND AND WALES
The Shropshire’s Community and Mental Health Services National Health Service Trust (Establishment) Order 1998

Made
3rd March 1998

Coming into force
1st April 1998

The Secretary of State for Health, in exercise of the powers conferred on him by section 5(1) of, and paragraphs 1, 3 to 5 and 6(2)(d) of Schedule 2 to, the National Health Service and Community Care Act 1990(1) and of all other powers enabling him in that behalf, having completed the consultation prescribed under section 5(2) of that Act(2), and considering it appropriate to include, among the functions of the NHS trust established by this Order, certain functions in relation to the provision of services by the trust for Health Authorities or Special Health Authorities(3), hereby makes the following Order:

Citation, commencement and interpretation

1.—(1) This Order may be cited as the Shropshire’s Community and Mental Health Services National Health Service Trust (Establishment) Order 1998 and shall come into force on 1st April 1998.

(2) In this Order, unless the context otherwise requires—

“the Act” means the National Health Service and Community Care Act 1990;

“community health services” means any services which the Secretary of State may provide under section 3(1)(d) or (e) of or Schedule 1 to the National Health Service Act 1977 and any service which he has a duty to provide under section 5(1) or (1A) of that Act(4);

“establishment date” means 1st April 1998;

“the trust” means the Shropshire’s Community and Mental Health Services National Health Service Trust established by article 2 of this Order.

Establishment and name of the trust

2.  There is hereby established an NHS trust which shall be called the Shropshire’s Community and Mental Health Services National Health Service Trust.

Functions of the trust

3.  The trust’s functions (which include functions which the Secretary of State considers appropriate in relation to the provision of services by the trust for one or more health authorities) shall be:—

(a)to own and manage pursuant to section 5(1)(a) of the Act West Bank, Wellington, Telford TF1 2EF and Cross Houses, Nr. Shrewsbury, Shropshire SY5 6JN and there to provide hospital accommodation and services and community health services;

(b)to provide and manage pursuant to section 5(1)(b) of the Act the Royal Shrewsbury Hospital, Shelton, Bicton Heath, Shrewsbury, Shropshire SY3 8DN and other hospitals, establishments or facilities in Shropshire, and there to provide hospital accommodation and services and community health services;

(c)to own and manage pursuant to section 5(1)(a) of the Act Cross Houses, Nr. Shrewsbury, Shropshire SY5 6JN and associated premises, and from there to manage ambulance and associated transport services.

Directors of the trust

4.  The trust shall have, in addition to the chairman, 5 executive directors and 5 non-executive directors.

Operational date and accounting date of the trust

5.—(1) The operational date of the trust(5) shall be 1st April 1998.

(2) The accounting date of the trust shall be 31st March.

Limited functions before operational date

6.  Between the establishment date and the operational date the trust shall have the functions—

(a)of entering into NHS contracts;

(b)of entering into other contracts including contracts of employment; and

(c)of doing such things as are reasonably necessary to enable it to begin to operate satisfactorily with effect from the operational date.

Assistance by Health Authority before operational date

7.—(1) The Shropshire Health Authority shall discharge the liabilities of the trust incurred during the period from and including the establishment date until the operational date that are of a description specified in paragraph (2) of this article.

(2) The liabilities referred to in the preceding paragraph are—

(a)liability for the remuneration and travelling or other allowances of the chairman and non-executive directors of the trust;

(b)liability for the travelling or other allowances of the members of committees and sub-committees of the trust who are not also directors of the trust;

(c)liability for the remuneration of persons employed by the trust; and

(d)any other liability which may reasonably be incurred by the trust for the purpose of enabling it to begin to operate satisfactorily with effect from its operational date.

Restriction on disposal of assets

8.  The sum specified for the purposes of paragraph 6(2)(d) of Schedule 2 to the Act (maximum value of freely disposable assets) in relation to the trust shall be £1,000,000.

Signed by authority of the Secretary of State for Health

Alan Milburn
Minister of State,
Department of Health
3rd March 1998

Explanatory Note

(This note is not part of the Order)
This Order establishes the Shropshire’s Community and Mental Health Services National Health Service Trust, an NHS trust provided for in section 5 of the National Health Service and Community Care Act 1990. It also provides for the functions of the trust both before (article 6) and after (article 3) its operational date (the date on which it assumes all its functions). It specifies the operational date and the accounting date of the trust (article 5) and makes provision for assistance to the trust by health authorities before its operational date (article 7). It specifies the value above which assets cannot be disposed of without the Secretary of State’s consent (article 8).
This Order should be read in conjunction with the Shropshire’s Community Health Service National Health Service Trust (Dissolution) Order 1998(6) and the Shropshire’s Mental Health National Health Service Trust (Dissolution) Order 1998(7).


(1)
1990 c. 19 (“the 1990 Act”); paragraph 1 of Schedule 2 is cited for the definition of “an order”.

(2)
Section 5 was amended by paragraph 69 of Schedule 1 to the Health Authorities Act 1995 (c. 17); see S.I. 1996/653.

(3)
See section 5(6) of the 1990 Act.

(4)
1977 c. 49; section 5 was amended by and section 5(1A) inserted by the Health and Medicines Act 1988 (c. 49) section 10(1); Schedule 1 was amended by the Education Act 1980 (c. 20), Schedule 1, and the Health and Medicines Act 1988 (c. 49), Schedule 2, paragraph 7.

(5)
See, for the definition of “operational date”, paragraph 3(1)(e) of Schedule 2 to the 1990 Act.

(6)
S.I. 1998/515.

(7)
S.I. 1998/518.