To ask the Scottish Executive what the reasons are for the NHS investing in shares; how much each NHS board has invested and in what companies; who incurs any losses that are accrued, and who monitors the receipts.
NHS boards are not permittedto invest in shares and will therefore have no reason to do so and invest nil,incurring no losses and having no receipts.
NHSboards may, however, invest funds donated to them in shares but the ScottishExecutive does not hold any information on these funds, as they are held on theboards’ behalf as separate endowment funds. Investment of NHS endowment fundsis a matter for the individual fund managers and may also be governed by theterms of the endowment made.
The Executive have supplied the following corrected answer:
Mr Andy Kerr: NHS boards are notcurrently permitted to invest in companies without specific authority fromScottish ministers. However Scottish ministers agreed that NHS Grampian, NHSGreater Glasgow, NHS Lothian and NHS Tayside should be allowed to own shares inTMRI Ltd., a Scottish limited company newly formed by those boards, four of Scotland’sUniversities and Scottish Enterprise for the purpose of facilitating a medicalresearch collaboration with Wyeth Pharmaceuticals. Each board has subscribed atotal of £1,000 in return for being issued 1,000 ordinary £1 shares in TMRILtd. The universities and Scottish Enterprise have also bought shares in TMRILtd and any potential losses in excess of the share capital would be borne byTMRI Ltd itself. Financial monitoring is the responsibility of the board ofdirectors of that company, which includes a representative of eachparticipating NHS board.
NHS boards may also investfunds donated to them in shares but the Scottish Executive does not hold anyinformation on these funds, as they are held on the boards’ behalf as separateendowment funds. Investment of NHS endowment funds is a matter for theindividual fund managers and may also be governed by the terms of the endowmentmade.