Micheál Martin (Cork South Central, Fianna Fail)
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After yesterday's ballot results from SIPTU on the Croke Park II agreement it is now very clear it has been rejected by the membership of trade unions throughout the country. Many union members never believed in the first instance that this was a fair deal and they were not persuaded by the Government. We have been pointing out to the Government, and putting down markers with regard to the strategy it adopted, the disproportionate attack on and unfairness of the deal to front-line workers in particular. For some reason, health sector workers seemed to have been sidelined and shafted from the very beginning as were workers in the justice arena.

The Government's strategy was essentially a mixture of divide and conquer, pitting unions against unions, with a little bribery at the end with a €300 million honeypot for a range of side deals with various unions, the details of which have never been publicised. When the soundings were negative towards the end, basic intimidation and threats were used with the Government stating if the unions did not vote "Yes" it would go ahead with legislation to introduce an across the board 7% cut. The mixture and combination in this strategy was clearly wrong and misfired significantly, and union members did not take well to the threats. The result is a rejection of the deal. A message has been sent to the Government by public sector workers.

Notwithstanding the cynical strategy deployed to get the deal over the line and having approached it more as a numbers game than anything else, does the Government have a plan B? The Minister responsible, Deputy Howlin, seemed to be shell-shocked on "Six-One" yesterday in his response to the deal. He spoke about telephone calls. For many people on the ground there was no surprise that the deal went down. The only surprise today is that Ministers seemed to have been surprised and taken aback by the result. Surely the Taoiseach must have factored into his thinking the possibility the deal would be rejected and has a plan B. If he does not, do we take it the threats, utterances and articulation by the Minister, Deputy Brendan Howlin, that he would go ahead anyway - which the Taoiseach also stated earlier in the process - were never meant and it is not now on the agenda? Will the Taoiseach outline his plan B given the outcome of the vote on Croke Park II?

Enda Kenny (Mayo, Fine Gael)
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I will outline the truth of the situation for Deputy Martin. Let me assure him and everybody else the Government is absolutely united behind the Minister for Public Expenditure and Reform in his declaration and negotiations that we need to find €300 million in extra savings from payroll this year and €1 billion by 2015. There is absolute unity of purpose in Government towards achieving this objective. I recognise the result of the ballot yesterday. I point out to Deputy Martin the mandate given by the Government to the Minister, Deputy Howlin, was to open negotiations and discussions in a full, open, truthful and constructive fashion and the Labour Relations Commission came forward with its proposals. These proposals were based on a fair and equitable contribution from the public sector given that 35% of expenditure is allocated to public sector payroll and pensions. This was done specifically to defend front-line services and to keep a very clear view of the progress the Government has made with the people in terms of the path we have been following towards recovery of our economic independence and towards achieving credibility internationally and growing our own economy so we can provide jobs for our people.

The Government will now consider the outcome of the ballot and its consequences. The bottom line is absolutely clear. We must and will find €300 million of extra savings this year from payroll and this is the challenge the Government now faces. Obviously we will reflect on this. Last Sunday, Deputy Martin's spokesman equivocated with regard to €60 million out of the €1 billion in savings between now and 2015. When Fianna Fáil had the opportunity on two occasions it imposed unilateral cuts without any discussion. At least the Government entered a very open, consultative and truthful situation with the public sector and gave it the time and space to make its decision in the proper fashion. It has made its decision. The arithmetic does not change and neither does the bottom line. We need to find €300 million of extra savings this year from within payroll and the Government is absolutely united behind the Minister for Public Expenditure and Reform in achieving these because they are necessary for our country and the broader impact of the challenge people have faced throughout the country to clean up the mess we inherited.

Micheál Martin (Cork South Central, Fianna Fail)
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It is very clear the Taoiseach's plan B is to reflect. I find it extraordinary there is no more detail emanating from him on the scenarios he must have factored in. In the Irish Independent on 13 April, when the news from the teachers' unions was not good, the Minister, Deputy Howlin, spoke about a 7% cut across the board.

Brendan Howlin (Wexford, Labour)
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Did Deputy Martin read the article?

Micheál Martin (Cork South Central, Fianna Fail)
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I welcome that the Government is united and that Fine Gael and the Labour Party are united on this issue. Some elements of the Labour Party have been speaking out of both sides of their mouths-----

James Reilly (Dublin North, Fine Gael)
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Deputy Martin would not know anything about that.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Resist the temptation.

Micheál Martin (Cork South Central, Fianna Fail)
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-----on this issue so it is welcome to hear a unity of purpose exists. Several weeks ago the Taoiseach was asked in the Dáil about three elements of legislation committed to by the Minister, Deputy Howlin, which he stated would be implemented irrespective of a vote.

The Taoiseach was asked yesterday in the House if that legislation would be coming forward as regards aspects of this particular deal, but he equivocated on that and did not give a straight answer.

The Taoiseach talked about transparency, but the bottom line is that in recent weeks our spokesperson on this issue has been seeking full transparency on the €300 million of side deals that were negotiated with different unions to sweeten the deal after the LRC package had been announced, with a view to trying to get the numbers over the line.

Brendan Howlin (Wexford, Labour)
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The Deputy published none of them.

Micheál Martin (Cork South Central, Fianna Fail)
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We saw this from the front-line workers.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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This is question time.

Micheál Martin (Cork South Central, Fianna Fail)
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We have no idea what kind of nods and winks were sent in different directions to try to get the votes over the line. The Taoiseach played an old-fashioned, traditionalist numbers game to try to get this deal over the line and it failed spectacularly.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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I must ask the Deputy to resume his seat.

Micheál Martin (Cork South Central, Fianna Fail)
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It was a combination of divisive politics and a bit of bribery and intimidation at the end, but it misfired spectacularly.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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I would remind Deputies that this is Leaders' Questions, not statements.

Enda Kenny (Mayo, Fine Gael)
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It seems to me that Deputy Martin has passed through some road to Damascus down in Cork. When he had the opportunity and responsibility to be truthful and open with the people of this country, he denied public access to any letters of clarification issued by governments of which he was a member. He shredded all the information in so far as benchmarking was concerned years ago.

Mattie McGrath (Tipperary South, Independent)
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And you wanted more.

Enda Kenny (Mayo, Fine Gael)
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Unlike the situation that the Minister, Deputy Howlin has set out here, he published the clarifying letters for those unions and their representatives that stayed in at the talks, in respect of those in front-line services, such as firefighters, prison officers and members of the Defence Forces.

Mattie McGrath (Tipperary South, Independent)
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Divide and conquer.

Micheál Martin (Cork South Central, Fianna Fail)
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The Taoiseach tried to buy votes.

Enda Kenny (Mayo, Fine Gael)
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I would have thought that someone of Deputy Martin's experience would at least allow an opportunity for the LRC to announce formally the result of the ballot that was taken. That is the very least one would expect from him but he does not even seem to recognise that. I have set out the Government's position which is absolutely clear. The people have faced up to difficulties in recent years because of the wreckage left behind by Deputy Martin's party. To a great extent, we have recovered our international economic credibility and reputation. Everybody has contributed to that. We have a challenge in getting €300 million extra of savings from within the payroll this year and €1 billion by 2015. That is the challenge the Government now has to face. It is an issue we will deal with from within the payroll. The Government is absolutely united with the Minister for Public Expenditure and Reform in declaring the truth of this matter. All of those who voted - some voted for and some voted against-----

Micheál Martin (Cork South Central, Fianna Fail)
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More voted against it.

Enda Kenny (Mayo, Fine Gael)
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The Deputy recognises this, but the party on his right-hand side has a different view. Before the last budget, they put forward a proposition of €3 billion of extra taxes which would have delivered a lethal injection to the Irish economy, driving thousands of jobs out of the country.

Willie O'Dea (Limerick City, Fianna Fail)
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What is the Taoiseach's plan to deal with it? That is the question.

Micheál Martin (Cork South Central, Fianna Fail)
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The workers did not believe the Taoiseach. They voted against it.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Please.

Enda Kenny (Mayo, Fine Gael)
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We must follow a credible fiscal plan to retrieve our economic independence, restore our public finances to good health, and continue to make changes that bring about greater efficiency and a greater effect for front-line services.

Micheál Martin (Cork South Central, Fianna Fail)
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Is it an action plan?

Willie O'Dea (Limerick City, Fianna Fail)
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A jobs action plan.

Enda Kenny (Mayo, Fine Gael)
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These discussions were fair, equitable and brought about a contribution from the public sector which is necessary as part of the overall sector to deliver €300 million extra savings this year and €1 billion by 2015. It is in the interests of the people and the country's reputation generally. The Government will now sit down in the coming period to deal with that particular issue.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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The purpose of Leaders' Questions is for Opposition party leaders to ask serious questions on serious matters-----

Michael McGrath (Cork South Central, Fianna Fail)
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And to expect a reply.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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-----and for the Taoiseach to reply. There are people in the Public Gallery who would like to hear the questions and replies. There are also people watching on television who would like to hear the replies. All these smart-alec remarks and mumbling are not impressing anybody, so Deputies should give people a chance to listen to what is being said. This is a very important issue and people want to hear the answer.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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Yesterday, public sector workers dealt a body blow to the Government's austerity agenda with an overwhelming majority of unions saying "No" to Croke Park II. The truth of this matter is that workers correctly calculated that this was an unfair deal. They recognised that it would be bad for public sector workers and their families, bad for the public services on which we all depend and bad for the domestic economy. Our nurses, teachers and emergency service workers refused to be intimidated by the bully boy threats of the Minister, Deputy Howlin. They have sent the Taoiseach a very clear signal. They are telling him that he has taken enough from them and they do not have any more to give.

The idea that €1 billion would be sucked out of public services and not hurt the schools that educate our children or the hospitals that care for our sick family members, was always absurd. Equally absurd is the claim by the Minister, Deputy Howlin, that he will run out of money before the end of the year. Anyone with the wit to read the NTMA's Exchequer balance figures knows that is simply not true.

Emmet Stagg (Kildare North, Labour)
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Could the Deputy circulate the script, please?

Mary Lou McDonald (Dublin Central, Sinn Fein)
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Everyone knows that we have to address the deficit but the Taoiseach's approach is unfair and unworkable. There are alternatives. If he is so concerned about making payroll savings, he should tackle the issue of excessive pay at the top of the public service and Civil Service. He should get a real deal on generic drugs, or why not a third tax rate on individual incomes over €100,000?

Brendan Howlin (Wexford, Labour)
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Give everyone a first-class ticket.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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These alternatives would raise the revenue the Taoiseach says is required to meet the troika target. Never mind reflecting or considering, will the Taoiseach respect the outcome of the unions' vote on Croke Park II? Will he now withdraw his threat of an across the board cut of 7%? Will he go back to the drawing board and look at the alternatives to raise the revenue he says he requires and come back with a deal that is fair to workers, their families and the domestic economy?

Enda Kenny (Mayo, Fine Gael)
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What the Deputy is proposing is complete and utter hypocrisy from what she put forward just a short time ago, which was €3 billion of extra income tax which would be a lethal injection for the economy, driving thousands and thousands of jobs out of our country. The Sinn Féin proposition for the economic development of this country is simply and utterly catastrophic.

Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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Where is the Taoiseach heading?

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Hold on a second and settle down.

Enda Kenny (Mayo, Fine Gael)
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Some 87% of public sector workers had their pay absolutely protected under the negotiations that were conducted here. Deputy McDonald will be aware that the top 5% of income earners pay 44% of tax at the moment.

A Deputy:

All the taxi drivers in Castlebar.

Enda Kenny (Mayo, Fine Gael)
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In February, Deputy McDonald asked the Minister for Public Expenditure and Reform what the outcome would be if everybody's income was capped at €100,000, including those in local authorities and State agencies. The estimated net savings would be less than €110 million, which would give a marginal tax rate for a public servant on €100,000 per annum, or higher, of at least 62.5%.

Last night, Deputy McDonald was asked what her alternatives were and she said she would put on her thinking cap and that a 48% tax would bring in €300 million.

Ciarán Lynch (Cork South Central, Labour)
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They need a bigger hat.

Enda Kenny (Mayo, Fine Gael)
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That party needs to get a lot more thinking caps because what the Deputy is proposing would be the ruination of this country. As I told Deputy Martin, the Government will now consider the outcome of the ballot as announced by the LRC. We will consider the truth of the bottom line expressed repeatedly by Government, particularly by the Minister, Deputy Howlin, whom we absolutely support in this, of achieving €300 million of extra savings from within payroll this year, amounting to €1 billion by 2015. That is absolutely necessary for the economic salvation and development of our country as we retrieve our economic sovereignty, improve the public finances, run systems efficiently and provide jobs for our people. In addition, it is necessary to protect and develop the front-line services to which Deputy McDonald referred, in respect of which we are borrowing in excess of €1 billion every month at the moment.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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May I politely suggest to the Taoiseach that for the 426,000 people on the live register and the 1,600 people who emigrate each week, it is the Taoiseach and his Administration that are delivering the so-called lethal injection? The Taoiseach really has shown his hand in his response because he will not countenance levying the burden on those who have more. He simply will not do it.

Finian McGrath (Dublin North Central, Independent)
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Hear, hear. Go after the fat cats.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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He will not look at the high earners in the public sector or the private sector. He simply will not do it.

Noel Harrington (Cork South West, Fine Gael)
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Does the Deputy want jobs?

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Sorry, please-----

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Stay quiet please, thank you.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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If the Taoiseach or his colleagues thought for one second that middle and low-income workers in the public sector were a soft touch for the Government's lethal injection-----

Brendan Howlin (Wexford, Labour)
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65K plus.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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-----they got it very wrong.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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A question, please.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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I suggest the Taoiseach puts on his thinking cap. That was my point last night and I am glad the Taoiseach was tuned in. He clearly is averse to any sort of thinking outside the box. The Government must find €300 million and Sinn Féin has given it concrete examples of where those moneys can be raised.

Brendan Howlin (Wexford, Labour)
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Where?

Mary Lou McDonald (Dublin Central, Sinn Fein)
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Go and find it-----

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Thank you.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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-----but back off public sector workers who struggle to heat their homes and to pay their bills.

Brendan Howlin (Wexford, Labour)
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What about private sector workers?

Mary Lou McDonald (Dublin Central, Sinn Fein)
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This is the reality of what the Government has delivered thus far. Could the Taoiseach please answer my questions?

Regina Doherty (Meath East, Fine Gael)
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What is the Deputy's question?

Mary Lou McDonald (Dublin Central, Sinn Fein)
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Will the Government back off the threat of the 7% across-the-board cut-----

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Deputy, you are over time. Will you please put your question?

Mary Lou McDonald (Dublin Central, Sinn Fein)
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-----"Yes" or "No"? Will the Government really respect the democratic verdict of the unions and their workers, "Yes" or "No"? These are pretty clear-cut questions, which even in-----

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Thank you. Please resume your seat.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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-----the absence of a thinking cap, even the Taoiseach should be able to answer.

Enda Kenny (Mayo, Fine Gael)
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As I already told the Deputy, the Government has a clear fiscal programme set out, which requires it to achieve €300 million of additional savings from within payroll this year in 2013, amounting to €1 billion in additional payroll savings by 2015. This is what the Government must deal with now.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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Will the Government legislate for that?

Enda Kenny (Mayo, Fine Gael)
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The Government obviously will consider the outcome of the ballot-----

Mary Lou McDonald (Dublin Central, Sinn Fein)
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So it will not.

Enda Kenny (Mayo, Fine Gael)
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-----and will make its decisions as to how those €300 million of additional savings can be achieved. The Government's door is and always has been open to unions and their representatives to make known their views. The discussions and negotiations that took place under the direction of the Minister, Deputy Howlin, with the Labour Relations Commission, LRC, and the trade unions were extensive, full and truthful. I again repeat for Deputy McDonald that 87%, that is, the overwhelming majority of public servants, had their pay untouched by the proposals on the table.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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That is not true and the workers know that.

Enda Kenny (Mayo, Fine Gael)
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For the Deputy's information, she is aware of this but will not say it.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Sorry Deputy, would you allow-----

Enda Kenny (Mayo, Fine Gael)
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She will not recognise it.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Sorry, Deputy McDonald, you are the very one who demands silence when you are speaking.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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I rarely get it.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Would you please allow the reply without interruption?

Anthony Lawlor (Kildare North, Fine Gael)
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There are ways of making people keep silent.

Enda Kenny (Mayo, Fine Gael)
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As I stated, 87% of public sector workers had their core salaries and core pay protected under the negotiations and the LRC proposals.

Timmy Dooley (Clare, Fianna Fail)
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That was the reason the Government got such a resounding result yesterday.

Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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Yes, as evidenced by the results.

Enda Kenny (Mayo, Fine Gael)
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It is perfectly obvious that when, in her vision for the new Ireland, the Deputy proposes to tax those on higher levels out of existence-----

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Hardly out of existence.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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Yeah right.

Enda Kenny (Mayo, Fine Gael)
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-----the Association of Higher Civil and Public Servants voted overwhelmingly against this proposal, simply because its members were targeted by the Government for bigger contributions from higher salaries. Consequently, it is blatantly untrue for the Deputy to state there is or has been no focus on those who earn most to pay most. As I told the Deputy, the marginal tax rate and the pension-related deduction for a person now in receipt of a salary of more than €100,000 is 62.5%. The Deputy simply seeks to tax people out of existence with some vision-----

Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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Some fairness?

Enda Kenny (Mayo, Fine Gael)
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-----of hers that this will sort out all our problems.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Instead, the Government taxes the poor out of existence.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Thank you Taoiseach.

A Deputy:

Sinn Féin knows all about fairness.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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The Taoiseach should answer the questions.

Enda Kenny (Mayo, Fine Gael)
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The challenge now is to achieve €300 million in additional savings this year. Allow me to reassure Deputy McDonald there is absolute unanimity in the Government on this matter and unity of purpose in the Government in achieving those additional savings.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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Does the Labour Party share that view?

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Thank you. I call Deputy Halligan.

Derek Keating (Dublin Mid West, Fine Gael)
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Does that answer the Deputy's question?

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Could we have Deputy Halligan without interruption please?

John Halligan (Waterford, Independent)
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The Taoiseach undoubtedly is aware of the grave concerns regarding the leaked report prepared by Professor John Higgins on the proposed hospital network reconfiguration in the south east. This is an area populated by more than half a million people. I understand the long-awaited report by Professor Higgins on the hospital groupings is before the Cabinet and I am almost certain the Taoiseach is aware of it at this point. I have heard that two distinct options are under consideration at present. There is a proposal that the south-eastern hospitals stand alone as separate groups or that Waterford and Clonmel should be grouped with Cork, while Kilkenny and Wexford should be grouped with Dublin. In this instance, I understand that Waterford Regional Hospital would become and acquire the status of a specialist teaching hospital. Can the Taoiseach confirm whether he has seen the report and, if so, can he give his views thereon? The Minister for Health previously gave a commitment to me and other Oireachtas Members in the south east that were Waterford to be grouped with Cork, which is reliably rumoured to be the case, absolutely no service would be lost at Waterford Regional Hospital. Will the Taoiseach also give a commitment in this regard? In addition, will the Taoiseach confirm that no jobs will be lost as a result of this regrouping?

The Taoiseach will be aware that more than 15,000 people took to the streets in Waterford last year and still have no answers. Thousands of people, many of whom are ill and traumatised, urgently require the Government to give a commitment that essential services such as oncology, orthopaedics, cardiovascular surgery, accident and emergency services and so on will be protected within the new hospital groupings. The time has come where people can wait no longer. The Government should be upfront and honest and should tell people what is happening in respect of the reconfiguration of the hospitals and the network. As I stated, all Deputies, Senators and councillors in the south east have been briefed as to what will be the likely outcome. Almost all of them are united on what should happen and many of them are under fierce pressure. In fairness, this applies in particular to Deputies, Senators and councillors from Fine Gael and the Labour Party, who worry about what might happen under this reconfiguration. People want the Taoiseach and the Minister for Health to give a commitment this morning that no matter what happens in the new configuration, all the essential services will be protected, particularly in respect of Waterford Regional Hospital.

Enda Kenny (Mayo, Fine Gael)
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I thank Deputy Halligan for raising this matter. Everyone is aware that in June 2012, the Minister for Health appointed Professor John Higgins to conduct and share a strategic board on the establishment of hospital groups. The strategic board has representatives of national and international experience. More than 100 meetings took place around the country and it is clear that a great deal of politics of many sorts was involved in the discussions and arising from the potential consequences.

Mattie McGrath (Tipperary South, Independent)
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Big Phil was not going to wait for that.

Enda Kenny (Mayo, Fine Gael)
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Deputy Halligan should note the Minister expects to bring his recommendations to the Cabinet the week after next, that is, I expect it to come before the Cabinet in two weeks' time.

In regard to Waterford, which obviously is a strategic location and which, as the Deputy noted, serves half a million people in the south east, there is a full commitment to the retention of Waterford as one of the eight existing national cancer services with all the associated services in the hospital. This already has been confirmed in the national cancer care programme, NCCP. Consequently, Waterford Regional Hospital will continue to be a NCCP centre. It will retain the same population referral base for cancer patients it currently has. Joint consultant appointments across the groups, such as general surgery, which is shared with Wexford, will continue to support the specialist cancer services it provides. Trauma services will continue to remain at Waterford Regional Hospital and the hospital will retain its current suite of services, including invasive cardiology, as well as trauma and oncology services.

This is all part of a programme of change being directed by the Minister for Health to establish hospital groups and then hospital trusts, so a far more efficient service will be provided for people throughout all regions of the country. Waterford is an important location and will continue to be one of the eight centres. It will continue to retain its current suite of services, including invasive cardiology, trauma and oncology services, and the same patient referral basis it currently has.

John Halligan (Waterford, Independent)
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I thank the Taoiseach for his direct answers to my questions. There is also some concern about budget allocation. Cork University Hospital had a deficit of €2 million last year, while Waterford Regional Hospital had a deficit of €6,120. The front-line staff in Waterford Regional Hospital can tell horror stories of having to keep within budget and out of deficit. It is very important that we be given an assurance that any proposal brought forward relating to the future of hospitals will include comprehensive details as to how the budgets in each of the hospitals will be allocated within the overall grouping. It is important for everybody that there is accountability. If hospitals are doing their job within the specific budgets allocated to them, they should be treated accordingly. If one hospital has a deficit of €2 million while another hospital has stayed within its budget, it is not right that the hospital that stayed within budget should be hindered in any way in the future allocation of finances. In fact, the finances for these hospitals should be increased.

Enda Kenny (Mayo, Fine Gael)
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The issue Deputy Halligan mentions in respect of budgets is also associated with the requirement of the Government to achieve €300 million in extra savings from within the payroll this year. There are significant finances involved in the health sector and in hospitals. The point the Deputy made is obviously one for discussion for each group when the groups are set up. Clearly, one will not have a situation where one sets up a group and deprives or denies access to funding to provide services to a hospital within the group. The groupings will make it easier for hospitals to recruit medical personnel and will give them far greater autonomy in the way they do their business in terms of the services they deem to be a priority and which they wish to promote or retain, as the case may be. In Waterford, for example, there has been a significant capital investment in the provision of a new neonatal unit. It has been completed and is currently being fitted out for use. That is all part of the discussion that will take place about the overall budget and how it is divided between the hospitals, be they major, local or county, within the groupings when they are established.