Gerry Adams (Louth, Sinn Fein)
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To ask the Minister for Health if he will provide a detailed breakdown of the way the €130 million in cuts announced by the Health Service Executive in late August will affect the HSE North East region; the services that will be withdrawn; and if he will make a statement on the matter. [38562/12]

James Reilly (Dublin North, Fine Gael)
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The financial situation in the HSE continues to be extremely challenging. In the short term, to address the 2012 position, it has been agreed that cash limits will be imposed on agency, overtime and there will be more targeted management of absenteeism. In addition, travel and subsistence will be limited, and there will be more intensive management of stocks in order to better manage cash. Other measures are also being undertaken in order to achieve a balanced budget. These include the use of capital to fund revenue on a once-off basis and the transfer of Department funds to the HSE on a once-off basis. The HSE has been required to review all pay and non-pay savings targets with a view to further targeting all areas which do not compromise patient safety.

Intensive discussions are ongoing between the Department of Health and the HSE in order to address the deficit. Each RDO is working closely with the National Directors of Integrated Services and Finance with a view to maximising the potential savings identified within their cost containment plans with a view to minimising the effect on front line services to the greatest extent possible.

Gerry Adams (Louth, Sinn Fein)
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To ask the Minister for Health the date on which he signed off on the decision to cut a further €130 million worth of services between September and the end of 2012; and if he will provide the timeline of events. [38563/12]

James Reilly (Dublin North, Fine Gael)
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The HSE is facing a very serious financial challenge and following a financial review of its National Service Plan which was submitted to the Board of the Executive in June, it was clear that it would have to make very significant additional savings over the course of the rest of the year. The June Performance Reports were considered by the Board and showed a net deficit of €295m. This report is published on the website of the Health Service Executive - www.hse.ie. Based on the rate of drawdown of its Vote, the HSE was forecasting a shortfall in Vote terms of approximately €500m by the end of the year if no action is taken. The Executive indicated that hospital activity, PCRS and retirements were significant factors contributing to the overrun.

Since then, there has been intensive engagement between my Department and the Health Service Executive to address the overrun in health expenditure. Following a number of meetings, additional cost containment measures were agreed and communicated to the Department of Public Expenditure and Reform on 29th August. It was outlined that in the short term, to address the 2012 position it had been agreed that cash limits will be imposed on agency and overtime and there would be more intensive management of absenteeism. In addition, travel and subsistence would be limited, and there would be more intensive management of stocks in order to better manage cash. Other measures would also be undertaken in order to achieve a balanced budget, including reductions on services, the use of capital to fund revenue on a once-off basis and the transfer of Department funds to the HSE on a once-off basis.