Mr. Liam Woods:

I am happy to comment for the information of the committee on the point relating to the funding of the hospital system. As Mr. Carter has noted, hospitals were always funded based on a gross budget net of an assumed income. Income is not solely private income; it could include pension levies and other receipts within the environment. At a macro level there is a budget of €5.3 billion for hospitals. Approximately €1 billion of that amount is offset by income that arises. The position has been that way for a long time.

I will address the point on stretch targets. The service plan for 2016 recognised that there was a stretch target. It also recognised that private activity in public hospitals is primarily coming through the emergency departments. The income is not under the direct control of the hospital. It recognises a risk in that regard. In going through this year, provision is made for it. The idea of there being income generated by hospitals, in the case of charges or other income streams, has long existed. Hospitals are, in effect, funded net. That is to say, they are funded to a gross expenditure level less an assumed income.