Oireachtas Joint and Select Committees

Wednesday, 29 November 2023

Select Committee on Health

Estimates for Public Services 2023
Vote 38 - Health (Supplementary)

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein) | Oireachtas source

In response to the questions about who got what email and who read it, the Minister made the point that it does not really matter who read it because most of the issues were understood. That goes to the heart of the problem here. It is not as simple as that. Yes, a memo is just a memo and an email is just an email but it was obviously a very substantial email and very stark. I will read a line of it in the moment, which is really stark and reinforces the point I made earlier about the difference between the income and expenditure deficit and the cash deficit. The problem is not so much the one email that was sent to the Secretary General of the Department of public expenditure and reform; it is all the other information. Even in the finance committee they said they were not made aware of how high inflation is, and even where they were made aware they did not agree with it. They said they were not made aware of the fact that the majority of the deficit for this year is recurring, when clearly it strikes me that they were. Blatant disregard for the facts is the only way I can put it and that is troubling. We cannot just accept that. We cannot say, "that it is fine; we can just move on and accept it". This is why it is more fundamental than the email.

I will read from the letter Bernard Gloster sent to the Minister. He talks about the €1.5 billion being the deficit, as he puts it. He then says:

The I & E [income and expenditure] position at end 2024 is likely to be substantially higher because of maturing liabilities, first charge accounting [this is the point I was making earlier] and inflation coupled with additional demographic demand. The position likely to face the HSE coming towards 2025 will be likely worse than today for 2024 when the 2025 doubtless incremental cost will be added.

What that tells me is that there is very little money for new funding in 2024. It is not a matter of "if"; it is a guarantee that we will have a very substantial deficit next year. We are going to be in the same position again with potentially no money for new developments. The health service could potentially be set back to be barely standing still for 2024 and 2025 because of this mismanagement. That is why it is important for us to get to the bottom of what was happening. I put the blame on the Government, obviously, but primarily on the Department of public expenditure and reform for not adequately funding the health service.

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