NATIONAL HEALTH SERVICE, ENGLAND AND WALES Citation, commencement and interpretation 1 1 This Order may be cited as the Lancaster Acute Hospitals National Health Service Trust (Establishment) Order 1991 and shall come into force on 1st November 1991. “ the Act ” means the National Health Service and Community Care Act 1990; “establishment date” means 1st November 1991; “operational date” has the meaning assigned to it in paragraph 3(1)(e) of Schedule 2 to the Act; “the trust” means the Lancaster Acute Hospitals National Health Service Trust established by article 2 of this Order. Establishment of the trust 2 There is hereby established an NHS trust which shall be called Lancaster Acute Hospitals National Health Service Trust. Nature and functions of the trust 3 1 The trust is established for the purpose specified in section 5(1)(a) of the Act. 2 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— to own and manage hospital accommodation and services provided at Royal Lancaster Infirmary, Ashton Road, Lancaster and associated hospitals. Directors of the trust 4 The trust shall have, in addition to the chairman 5 non-executive directors and 5 executive directors. Operational date and accounting date of the trust 5 1 The operational date of the trust shall be 1st April 1992. 2 The accounting date of the trust shall be 31st March. Limited functions before operational date 6 Between its establishment date and its 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 other things as are reasonably necessary to enable it to begin to operate satisfactorily with effect from its operational date. Assistance by health authorities before operational date 7 1 The Lancaster Health Authority shall— a until the operational date make such staff and facilities available to the trust as are required to enable the trust to carry out its limited functions pending the transfer or appointment of staff to or by the trust and the transfer of facilities to the trust; b make available such premises as are required to enable the trust to carry out its limited functions pending the transfer of those premises to the trust. 2 The Lancaster Health Authority shall discharge the liabilities of the trust, incurred between the establishment date and the operational date, that are of a description specified in paragraph (3) of this article. 3 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 the operational date. 4 The health authority specified for the purposes of paragraph 3(1)(f) of Schedule 2 to the Act (authority which is to make the scheme under section 6 of the Act for the transfer of staff) in relation to the trust shall be the Lancaster Health Authority. 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 Stephen Dorrell Parliamentary Under Secretary of State, Department of Health 21st October 1991