Joan Burton (Dublin West, Labour)
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Question 198: To ask the Minister for Health and Children the extent to which hospitals here can and do engage in multi-annual budgeting; and if she will make a statement on the matter. [40641/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The hospitals which are directly managed by the HSE and voluntary hospitals which are funded by the HSE are allocated budgets annually by the Executive in accordance with the National Service Plan, which the Executive must submit each year to me for my approval following the publication by the Government of the Estimates for the Public Services. As the HSE has its own Vote expenditure on the plan must be in line with the Estimates by the Government for that year for the HSE Vote.

The service plan must be drawn up in accordance with a wide range of criteria, including having regard to the Executive's 3 year corporate plan which sets out its key objectives and the strategies to achieve and measure the implementation of these objectives.

Voluntary hospitals are funded in accordance with Section 38 of the Act which provides that the Executive may enter into an arrangement with service providers. Before entering into an arrangement the Executive must determine, in respect of a financial year of the Executive, the maximum amount of funding that it proposes to make available in that year under the arrangement and the level of service it expects to be provided for that funding.

The 2004 Act, through the provisions for the corporate plan, provides for a multi-annual planning framework. However, in line with the Constitutional requirements regarding the sanctioning of Votes by the Dail, the Act does provide for budgets to be determined annually, within the context of the 3 year corporate plan and having regard to the resources made available to the HSE.

Specifically in relation to Capital Expenditure, the HSE submits a 5 year plan multi-annual Capital Plan. This Plan is in line with the annual figures for Capital Expenditure indicated in the Public Capital Programme. This Capital Plan is approved by me. Actual expenditure by the HSE in any one year must be within the overall limits Voted by the Dail on an annual basis.