Mary Harney (Dublin Mid West, Progressive Democrats)

In the first half of the year the Health Service Executive identified a projected deficit for this year in the region of €300 million if no remedial action were taken. The executive brought forward proposals to address the deficit and bring expenditure back in line with its Vote. The proposals were agreed by the board of the HSE. I was advised of the measures by the chairman of the HSE and that the goal for the remainder of the year would be to ensure an overall balanced Vote outcome on expenditure while optimising patient services and continuing the reform agenda.

These proposals, which were designed to ensure the delivery of the service plan, contained initiatives to further maximise value for money and reduce spending in areas where excess expenditure was occurring. The measures taken included bringing levels of service back in line with the targets set out in the service plan, as well as a range of cost savings in operational overheads. The latter included a reduction in travel and subsistence, a reduction in consultancy and advertising costs and the cancellation of all non-essential training. Other initiatives included increasing the collection of hospital charges and addressing absenteeism.

Implementation of these measures is being monitored by the executive and reported in line with the accountability procedures in place for monitoring the executive's expenditure and implementation of its service plan. These procedures include monthly meetings between my Department, the Department of Finance and the executive, quarterly high level meetings between my Department's Secretary General, the executive's CEO and their respective management teams. There is also ongoing liaison between my Department and the various directorates of the executive.

In respect of statutory charges, there were increases in accident and emergency and in bed charges at the beginning of the year.

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