Jerry Buttimer (Cork South Central, Fine Gael) | Oireachtas source

The second part of our meeting is our engagement with the Health Service Executive, HSE. I welcome the officials and thank Mr. Ray Mitchell and Mr. Paul Connors of the HSE for facilitating the meeting. We are discussing procurement of health equipment and products and service level agreements.

I welcome Mr. Liam Woods, HSE national director, acute hospital division, Mr. Michael Flynn, national director of internal audit, Dr. Geraldine Smith, assistant national director of internal audit, Mr. John Swords, HSE head of procurement, and Mr. Tom Lynch, chairman of the Ireland East Hospital Group. The meeting is to provide us with an update on issues around procurement practices in hospitals under the public purse and the HSE. Representatives of the HSE come before us to answer questions as part of a quarterly meeting. Today's meeting is specifically about expenditure and procurement and I ask members to confine their remarks to the topic rather than raising other HSE matters.

Just for the record, the HSE budget for the procurement of goods and services is approximately €1.6 billion, which represents 13% of the health service budget. A 10% reduction in procurement expenditure will result in a saving of approximately €160 million, which is equivalent to the combined cost of the drug payment scheme and long-term illness scheme, which is €157 million.

By virtue of section 17(2)(l) of the Defamation Act 2009, witnesses are protected by absolute privilege in respect of their evidence to the committee. However, if they are directed by the committee to cease giving evidence on a particular matter and they continue to so do, they are entitled thereafter only to a qualified privilege in respect of their evidence. They are directed that only evidence connected with the subject matter of these proceedings is to be given and they are asked to respect the parliamentary practice to the effect that, where possible, they should not criticise or make charges against any person, persons or entity by name or in such a way as to make him, her or it identifiable. Members are reminded of the long-standing parliamentary practice to the effect that they should not comment on, criticise or make charges against a person outside the House or an official either by name or in such a way as to make him or her identifiable. I thank the witnesses for attending and invite Mr. Woods to make his opening remarks.