Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The gross provision for the health Vote in 2015 is €12.677 billion, comprising €12.295 billion in current expenditure and €382 million in capital expenditure. Following restatement on a like-for-like basis consistent with the new Vote structure, the Exchequer funding provided in 2015 represents an increase of €564 million on the original 2014 provision. In addition to the Exchequer funding, increased non-Vote income of €130 million collected by the HSE will support expenditure in 2015. This contributes to a total increase of €694 million compared to the original 2014 Estimate. Savings of at least €130 million have also been identified, and this will be retained within the HSE to support services.

When adjusted for one-off issues, the January 2015 net Vote position is €16 million, or 1.3%, greater than the January 2014 position month-on-month. The 2015 net Estimate, compared on a like-for-like basis with the original 2014 net Estimate, is 4% higher, indicating that the January cash drawdown is not out of line with the available provision.

The Irish health services endured a seven-year period of significant retrenchment and funding constraint as a direct consequence of the financial crisis the Irish State had to address in the period 2008 to 2014. Improved 2015 budgetary parameters have allowed the HSE service plan to include a number of targeted enhancements to health and social care services, while providing generally for the delivery of existing levels of service. The 2015 HSE service plan represents a welcome turn of the tide in terms of the increased level of funding available.

In a welcome new development, any further savings that can be achieved over and above the target set in the national service plan will go back into the delivery of improved health and social care services.

It is not possible to address all of the issues and priorities in one year, and the operation of health services in 2015 will continue to demand very careful financial management. Nevertheless, we have made significant progress in putting the finances of the health system on a steadier and more sustainable path.

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