Bernard Durkan (Kildare North, Fine Gael)
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Question 134: To ask the Minister for Health and Children the extent to which the health budget for 2009 is expected to meet requirements in full to the end of 2009; and if she will make a statement on the matter. [45871/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I approved the National Service Plan for the Health Service Executive on Tuesday and I have laid it before both Houses. In approving the Plan I emphasised the necessity for the HSE to operate within the limits of its voted allocation in delivering at a minimum the levels of service which are provided for in the plan.

In broad terms the Plan outlines that the HSE will deliver the same activity in 2009 as in 2008. In order to deliver the level of services it is committing to, the HSE will be reconfiguring many front line services. This is in keeping with the overall strategic direction as set out in the HSE Corporate Plan 2008-2011 and includes: conversion of inpatient work to day case work, a focus on reducing inpatient length of stay in acute hospitals, reduction of in-patient bed numbers and associated costs and the provision of more services in community settings, thus reducing the dependency on in-patient beds.

The vote of the Executive was determined in the context of the fiscal challenges facing the country. In framing the vote the Government has provided an additional €950m to meet service pressures, including €120m to deal with pressures arising from demographic trends, such as increased birth rates and increased numbers of older people. However the Government has also required the Executive to undertake a range of cost saving measures and value for money initiatives of €323m in order to fund the increased level of expenditure in 2009.

With regard to pay I have allocated funding to meet the full year cost of the national pay award introduced in September of this year. However, in line with Government's overall approach no additional funding has been allocated in respect of the pay award due in September next year. I have requested the Executive's Board to submit a detailed plan to deliver sufficient savings in pay and overhead costs which have no impact on front line services to enable this award to be paid.

In addition to the measures I have just outlined I have also allocated a further €55m to enable the Executive to implement the 'Fair Deal' initiative as well as €15m to further develop cancer services and €10m for services for people with disabilities.

The current position regarding the public finances demands the most careful control of public expenditure. This requires all of those working within the HSE and the agencies it funds to control costs and seek to get the most from existing budgets. I am satisfied that the level of funding for the HSE will, through effective budgetary management and changes in service delivery, enable it to maintain and improve overall service provision and allow for key developments in line with the Government's priorities.