Part of the debate – in the Senedd at 5:02 pm on 19 November 2019.
The committee is broadly content with the estimated cost of the Bill of £30,000, which includes, of course, external legal support to implement the Bill using the new direct indemnity scheme regulation-making powers. We accept the Minister’s assurance that external legal support was used as a matter of expediency and that costs would have been similar if the work was undertaken by legal advisers within the Welsh Government.
The committee acknowledges this Bill will bring legislation in Wales in line with England as far as possible to provide a state-backed scheme providing clinical negligence indemnity cover for providers of GP services. We are pleased to hear that this will ensure GPs in Wales are not at a disadvantage and will help to ensure therefore that GP recruitment and cross-border activity will not be adversely affected by different schemes operating in England and in Wales. As part of the state-backed scheme, the Welsh Government will assume responsibility for historical clinical negligence claims that had been reported, or incurred but not reported, prior to 1 April 2019.
During evidence with the Minister, we heard the existing liabilities scheme was subject to the completion of legal and financial due diligence and satisfactory negotiations with the medical defence organisations, which are ongoing. I am pleased to hear the announcement that an agreement has been reached with the Medical Protection Society. I would be grateful if the Minister would keep the Assembly updated when negotiations have concluded with the other two medical defence organisations.
The committee heard the current estimate of liabilities that would be assumed by Welsh Government, were an existing liabilities scheme agreement to be signed with each medical defence organisation, would be in the region of £100 million before any transfer of assets. Now, the Minister told us this figure would reduce once the transfer of assets is factored in. However, the value of the transfer is currently restricted due to its commercial sensitivity and non-disclosure agreements between the Welsh Government and the medical defence organisations. Whilst we appreciate the Minister isn't currently able to provide this information, we believe it should be made available when feasible and we've recommended that the total value of the asset transfer is identified in the Welsh Government’s consolidated accounts that are laid before the Assembly.
In regard to managing the existing liabilities scheme, handling of claims up until April 2021 will be undertaken by the participating medical defence organisation, and after April 2021 by the NHS Wales Shared Services Partnership Legal and Risk Services. We heard that the Welsh Government believes the NHS Wales Shared Services Partnership Legal and Risk Services can take on management of existing liability claims at no additional cost. The committee recommends that the Welsh Government revises the regulatory impact to reflect that it doesn't anticipate any additional costs for the NHS Wales Shared Services Partnership when it begins managing the existing liabilities scheme from April 2021.