Oireachtas Joint and Select Committees

Tuesday, 14 November 2023

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Budget 2024 Expenditure Ceiling and Resource Allocation for the Department of Health and HSE: Discussion

Mr. David Moloney:

I think we need to be really clear that there is no underfunding of the HSE or of the Department of Health. It is one of the best funded health services in Europe. As a proportion of national income or government spending, by the Department’s own measure, which is per capitafunding on a purchasing-power parity basis, it is 20% above the EU average. There is no underfunding. That is not to say there are not challenges from year to year but in 2024, in addition to the €806 million, there is a €1 billion non-core. The only major change in the summer economic statement that was made and the budget parameters was to add €500 million to ensure the Department of Health could get an extra €500 million into its non-core, bringing it up to €1 billion. The purpose of that €1 billion is to deal with the kind of issues the Deputy is raising. It is that kind of difference in numbers in terms of what is required on an ongoing basis. It gives us time to unpack what the real drivers are. I accept that at some points they have been pointed at price and demand but in other parts of the conversation we have had over the Estimates process, in our ongoing engagement, it has been identified as a legacy of the pandemic. We are unpacking that.

There is a commitment by the Department of Health and, as I understand it, the HSE to improved budgetary management to a more reliable and robust pay and numbers strategy. That speaks to the Deputy’s point about recruitment. In the context of a strong and robust pay and numbers strategy, this kind of stop-start approach to recruitment will not be necessary. Those commitments are made.

On our part there is a commitment that as the data becomes available and we understand more what the key drivers are, we will continue to work with the Department of Health.

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