Oireachtas Joint and Select Committees

Thursday, 27 May 2021

Committee on Budgetary Oversight

Fiscal Assessment Report: Irish Fiscal Advisory Council

Mr. Sebastian Barnes:

Sláintecare is a major reform. We know health spending increased very sharply in recent years. I think it increased by approximately 30% in the three or four years before the crisis and the onset of the pandemic. Aspects of Sláintecare could help to reduce pressure on healthcare costs. It is an ambitious reform programme. We are not experts in health, so it is hard for us to make a detailed analysis. However, we are concerned that this major reform is being undertaken without any up-to-date estimate of the costs. The most recent assessment of the costs was done in 2017 by the health committee. Many things have changed since then and we do not have an up-to-date estimate, or at least none that we have seen, of how much the Government now expects Sláintecare to cost. We have seen the numbers for this year and the expected cost is €1.2 billion. Apparently, those numbers were in the budget but it was only made clear this month that that had happened. There is, therefore, a big issue of transparency there. We see this occur in many areas. There seems to be a deficiency in joining up different things across different Government documents and initiatives. Like the Deputy, we would very much like to know how much the Government thinks Sláintecare is going to cost and how fast it is planned to implement it. That is essential as the first stage.

The second stage would then be to consider the projected cost in respect of sustainability and risks. Internationally, when countries have undertaken healthcare reforms, they have often cost much more than expected and added to financial pressures. I am not saying that is going to happen in Ireland but given that we do not even have a baseline for how much Sláintecare is supposed to cost, it is very hard to think about those risks. It is urgent that the Government produces an up-to-date costing.

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