Mr. Sebastian Barnes:

The Chair's assessment of these issues matches what we found. From a fiscal forecasting point of view, the problem is a mismatch whereby the top-level top-down forecast does not correspond to the underlying dynamics or the objectives. This is a concern. The Chair is also correct that from a longer-term public finance perspective, there are probably a lot of inefficiencies. The information that is useful for forecasting is also useful for understanding where efficiencies and productivity can be increased. If the health system is not as efficient as it might be it increases pressure on overall public spending. There remain big concerns in the area.