Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank Deputy Boyd Barrett for the question, although I can assure him that it could not have been said every year by every Government. Before my party came into Government, the health budget was cut in the previous three budgets. It has not risen every year. The Deputy is right, however, that it has risen significantly again this year.

The gross current budget for the health sector for 2018 will be €14.798 billion. This is equivalent to a €646 million or 4.6% increase compared to the 2017 allocation of €14.152 billion. The increased level of funding available to the health sector in 2018 seeks to address the challenges facing the health services into the future posed by demographic pressures, including a rise in chronic diseases and an ageing population, technological developments and health inflation. These challenges are being addressed through the implementation of strategic initiatives such as ongoing initiatives to improve access and the continued focus on the shift to primary care, while continuing to address effective management of resources to ensure that services are delivered in line with the national service plan and within budget.

Let us break down that figure of €658 million, which I think is what the Deputy wants me to do. Of the increase in funding, over €200 million was provided for new developments, which will include expansion of existing services - things we are not doing this year and wish to do next year, and things we wish to do more. It includes funding for the national treatment purchase fund, NTPF, to reduce waiting lists, and a primary care fund. It includes expansion of services in the areas of mental health, disability and home care. The balance is available to maintain the existing level of services taking into account demographics, central pay decisions and other increases in cost. The costs of central pay decisions including national pay increases and the nursing agreement is €278 million in 2018.

To summarise, that is €278 million for central pay decisions and just over €200 million for new developments, out of an increase of €646 million. The exact quantum of services to be delivered in 2018 will be set out in detail in the 2018 national service plan currently being prepared by the Health Service Executive, which will be published before the end of the year. It is, however, not just about funding, but also about reform. I will come back to that in a moment.

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