Oireachtas Joint and Select Committees

Wednesday, 28 January 2015

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Comprehensive Expenditure Report 2015-2017: Minister for Public Expenditure and Reform

3:00 pm

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour) | Oireachtas source

I will finish my point on this because it is important. Both Deputies talked about health expenditure. It is funny that every public discussion I have on expenditure normally crystallises in the area of health. That is completely usual in every developed country. The issue will become more acute because we will have to make decisions on health care, particularly because there will be an increasing number of very expensive drugs becoming available. This was evident recently in respect of hepatitis drugs. Decisions will have to be made on their provision and the impact on the capacity of the State to pay for them. We have an ageing population and will have to take decisions on providing for an ageing population in a way that we have not in the past.

As the Deputy knows, the EU Commission and IMF are constantly reviewing expenditure in Ireland and commenting on it. In June 2014, the EU Commission made health recommendations for Ireland's national reform programme. Its document states:

Even though Ireland has a relatively young population, public healthcare expenditure was among the highest in the EU in 2012 at 8.7% of GNI, significantly above the EU average of 7.3%. Given the current difficulties in managing the health budget, expected demographic pressures due to an ageing population mean that current service levels can be maintained only if value-for-money gains are achieved over the medium to long term.”

This is where I come in as I must ensure that whatever we allocate — we are allocating as much as we can afford — is at least expended in an efficient way. That is really the process in which I want every Member of the Oireachtas to engage.

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