Michael Ring (Mayo, Fine Gael)
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Question 373: To ask the Minister for Health and Children the surplus in regard to the Western Health Board in 2002 and 2003; the areas to which this surplus reissued; and the projects to which it was reallocated. [4603/04]

Micheál Martin (Cork South Central, Fianna Fail)
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The outturn of the Western Health Board for 2002 was €672.234 million, giving a surplus of €11.594 million. The provisional outturn of the board for 2003 is €748.093 million, giving a surplus of €4.825 million. This gives a cumulative surplus of €16.419 million. This is provisional as the final figures for 2003 will not be available until the annual financial statements have been prepared and submitted for audit by 1 April next.

The 1996 accountability legislation requires boards to transfer either a deficit or surplus for the preceding year to the following year. Accordingly, the Western Health Board has included such surplus funding in its service plan-budget for 2004, which has already been passed by its board.

Following from meetings with health boards on 2004 service plans, Department officials met with some health boards to discuss issues arising and requiring follow-up. On those boards which recorded surpluses at the end of 2003, discussions covered the background to the financial outcome and the intended use of such once-off funding in 2004. Following these meetings it is clear that there was a combination of factors giving rise to the positive out-turns including: protecting specific service funding where this could not be invested due to timing issues. It is intended that this funding will be fully utilised in 2004 for the services specified; contingency funding balance not fully required in 2003, but now available in 2004; minor capital funding provided in late 2003 which had the effect of freeing up revenue funding previously committed.

In general, the planned service volumes in line with the 2003 service plan was delivered, indeed in the acute hospital sector delivery targets were exceeded. The planning of spending in the Department of Health and Children in any year is a complex issue, in the context of the increasing demand for services and the unpredictable nature of the pressures which can arise over the year. In line with Government policy all health agencies had been strongly advised by my Department to manage their resources on a prudent basis and to explicitly provide a contingency sum for unplanned pressures. While there are surpluses reported for a number of boards, the outturn for the health system overall reflects a positive variance of less that 1% of total spending.