Mr. Brian O'Donnell:

I will deal with Deputy Catherine Byrne's question about facts and figures on service reductions. In my submission, I said that in spite of significant funding reductions we have managed to maintain front-line services to the best of our ability. Most of our organisations are parents' and friends' associations, so one can imagine that they look at every expense before they go to front-line services. Up to now, we have been able to manage that. What has suffered is the quality of the service. We are seriously concerned about that. For 2013, all of the big ticket efficiency issues have been implemented and we are now looking at the front line for the first time. That is a source of huge distress to us. We have outlined what we are contemplating in the event of further service reductions.

Deputy Regina Doherty asked a number of questions. I will deal with two of them. At the start of the year when the budgets are announced, we will engage in a service level agreement process with the Health Service Executive. A service level agreement is, essentially, a contract. It is a quantum of service for an amount of money. Of course, voluntary organisations are reluctant to reduce the quantum of service and that feeds into the deficit. We try to maintain existing services, even in the face of funding cuts. Up to now, and this relates to my answer to Deputy Byrne, we have managed as well as we can to maintain services, but service level arrangements for 2013 will be far more difficult because we will be looking at service reductions in the event of further cuts. We deal with the HSE as colleagues. We do not see them as the big bad wolf. They are in a very difficult situation themselves. However, they are acknowledging that for the first time service reduction is something that will have to be contemplated.

I included St. Michael's House in the pack because, although it is just one member organisation all our organisations are suffering. I mentioned in my presentation that we have a perfect storm here, with the demographic going in one direction, finance and HR resources going in another and the gap between resources and demand on services ever widening. That challenge for voluntary organisations to maintain a balance is becoming increasingly difficult. The year 2013 brings us to the unfortunate place where we will have to contemplate service reductions so that we do not exacerbate that situation.

I will ask my colleague, Mr. Christy Lynch, to deal with the questions on deficits and HSE special schools.