Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank the Deputy for the question. On budget day 2017, the Oireachtas approved gross expenditure of €14.606 billion for the health services, which is the highest level ever, demonstrating the Government’s commitment to investing the gains from a recovering economy in a better health service. The provision for this year represents a 3.5% increase on the final projected 2016 outturn. The Health Vote for 2017 has increased by 9.4% over the 2015 outturn, recognising the Government’s commitment to providing a health service that seeks to improve the health and wellbeing of the people.

The additional funding secured will continue to support the health service to provide the optimum level of safe services for patients within the budgetary limits. However, there are still real fiscal challenges facing the health service. Health care demands continue to rise due to our growing and aging population, there is an increase in the incidence of chronic conditions and advances in medical technologies and treatments which are good for patients but come at a cost in terms of having a limited budget.

Accordingly, we must continue to focus on the effective use of limited resources and the management of funding made available by the Oireachtas. In the past, the health service did not manage its budget and the first call on any extra resources went into a black hole. We have managed to avoid that this year and all of the additional resources can be used for additional health services and demographic pressures.

On 20 October 2016, the HSE was notified of its maximum level of expenditure for 2017. The level of health services to be provided within this available funding is set out in the HSE’s 2017 national service plan. The allocation of additional funding to the health services is a matter for the Government and the Oireachtas, operating within the EU fiscal rules. It is fair to say that the Government used all of the fiscal space available to it, and health received a substantial increase in its budget as part of this.

This Government will continue to prioritise the needs of those requiring health services in determining the annual budget. This is evidenced by the provision of an additional €977 million in this year's allocation to the HSE compared to the original allocation for 2016. Perhaps in my response to the Deputy's follow-up question I will make the point that the level of funding is not the sole factor; we also have to consider how the money is spent within the health service.

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