Ciarán Lynch (Cork South Central, Labour)
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Question 69: To ask the Minister for Finance in respect of the Health Service Executive voluntary redundancy and early retirement schemes, the detail of the way this is proposed to be funded; if the up-front cost will impact only on the 2010 general Government balance; the savings that can be expected as a result of these schemes in 2011 and in each year to 2015; the way these savings will impact on the GGB; if the up-front cost will be treated as an exceptional item of expenditure; and if he will make a statement on the matter. [41628/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The actual cost and savings under the Voluntary Early Retirement (VER) and Voluntary Redundancy Schemes (VRS) for the health sector will depend on the overall take up of the schemes and the mix of take-up between the VER and VRS options. A maximum amount of €400m will be made available in 2010 to fund the upfront costs of the schemes. It will be included as an additional expenditure item in 2010. To the extent that it increases borrowing – it will be funded from borrowing for the current year and the upfront costs will only impact on the 2010 General Government balance. The projected savings, based on full take up to the €400m cap, are estimated to be some €200m per year. Based on the €400 million costing, this would increase the General Government Deficit (GGD) by 0.25% in 2010. In future years, the cost saving will similarly reduce the GGD by around 0.1% each year.