Dr. Ambrose McLoughlin:

Perhaps I could deal with the issues regarding expenditure and help members' understanding of the issues. At the end of last year the Government published its comprehensive expenditure review from 2012 to 2014. That report indicated that further savings of €1.1 billion in current health expenditure would be required over the period. I want to make it clear that this is in the context of the national recovery plan, which is being signed off by Government, and there are conditions attaching to that recovery plan.

I want to explain the €700 million to €900 million gap. Overall expenditure limits for 2012 to 2014 were set in the context of the CER process. The CER limit for 2013 is lower than the total budget for 2012 which at the moment is overspent by around of €330 million by the end of August and may be higher by the end of the year.

Some 4,900 staff departed in 2012. However, the health service is required to reduce the numbers further by 6,500 within the next two years while maintaining services. Due to the nature of the business-----