Mary Harney (Dublin Mid West, Progressive Democrats)

The HSE is facing significant financial pressures. These are due to a range of factors, including the implications for the HSE of the broader economic circumstances of the country. There have been intensive ongoing discussions between the executive and my Department regarding the executive's emerging financial position. Based on figures for the end of January and the end of February, the best estimate of the shortfall in HSE funding for the year was in the order of €480 million, including a shortfall of €100 million in health contributions. Subsequent to this overall assessment, the Department of Finance has notified an increase in its revised figure for the shortfall in health contributions from €100 million to €160 million. This figure is being kept under review in the context of the overall economic circumstances.

All projected overruns are influenced by the difficult circumstances we are in and subject to the limitations of forecasts. I wrote to the chairman of the HSE earlier this month and emphasised that it was crucial that the HSE manage the costs in its control. I indicated that under the circumstances, the HSE should focus on the measures required to be implemented to deliver on the service plan as outlined to me. As I have indicated to this House, the challenge to the HSE to break even within its financial allocation, while still protecting services, will present major difficulties. The board had previously agreed measures amounting to some €133 million and was asked to further examine how it could achieve another €72 million in savings.

I have indicated to the board that issues such as the income loss in health contributions, extra costs associated with the long-stay repayments scheme or the extra costs arising from increased medical card numbers will have to be considered by the Government in the context of the supplementary budget, which will introduced to the House next Tuesday.

The board of the HSE met yesterday to further consider its financial position. I understand a revised service plan will be submitted to me within the next five days. It will include proposals to save the further €72 million. I will consider the proposals contained in the revised service plan when it is submitted for my approval in accordance with the Health Act 2004.

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