A SENIOR health boss has admitted for the first time that she knew the "thrust" of crucial legal advice about a controversial cancer service transfer shortly after the advice was obtained.

Ann James, former chief executive of Cornwall Primary Care Trust, told a hearing yesterday that a letter she was copied into, which discussed the subject, alerted her – but she didn't take the matter any further.

The legal advice concerning the transfer of Upper Gastro-Intestinal (GI) cancer surgery had been sought by the Royal Cornwall Hospitals Trust (RCHT) in late July 2008.

It suggested that moving the service without a full public consultation may be unlawful.

After the Western Morning News obtained a copy of the previously unpublished document in October last year, a joint statement issued on behalf of the RCHT and the PCT said it "was not shared" with the latter.

Mrs James' admission she was aware of the document, but not its details, was revealed at an employment tribunal determining whether former RCHT chief executive John Watkinson was unfairly dismissed.

He claims the decision to fire him was a result of pressure from the regional Strategic Health Authority because of his opposition to the transferral of Upper GI services to Plymouth.

The RCHT insists the reason was concerns about a previous job and whether he was able to turnaround the trust.

In a tense exchange at the hearing yesterday, Mrs James was pressed by Jane McCafferty, for the claimant, on how much she knew of the legal advice.

"You knew the (RCHT) trust had legal advice?" said Miss McCafferty.

"I had not seen the legal advice," responded Mrs James.

John Hollows, chairman of the tribunal panel, asked: "You knew the thrust of it?"

"Yes, but I hadn't seen it," said Mrs James.

Miss McCafferty continued: "It's right that you had been aware from October 2008 that the trust had legal advice it was under a duty to consult?"

"Yes," said Mrs James.

Mrs James said she had not known before seeing a letter sent in October 2008, from the then acting chairman of the RCHT, John Mills, to Eric Parkin, then chairman of Cornwall County Council's overview and scrutiny committee.

The hearing, which is being held in Taunton, continues.