Terence Flanagan (Dublin North East, Independent)
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332. To ask the Minister for Health if he will provide a full breakdown of the set up costs of the Health Service Executive; and if he will make a statement on the matter. [2035/14]

James Reilly (Dublin North, Fine Gael)
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The establishment of the HSE involved the consolidation of the existing health boards and Comhairle na nOispideal, and as such did not generate set up costs. The existing funding for the health boards and hospitals, funded through the Vote of the Department of Health, was the basis for the funding of the HSE.

However, in the Revised Estimates 2005 certain once-off technical adjustments had to be made due to the establishment of the HSE as a Vote holder. In the past the total expenditure of Health Boards and some other Health Agencies was not recouped in full in the year of account. This required availing of approved bank overdraft facilities until a payment in respect of balances due was made in the following year. The creation of a separate Vote for the HSE and the requirement not to have recourse to overdraft facilities necessitates a higher level of recoupment through the Vote. This resulted in an additional allocation in 2005, on a once-off basis. There was a further once-off additional requirement arising from the change in the accounting treatment of statutory and other deductions from employee salaries. The total amount involved was of the order of €217m. Due to the fact that these are technical adjustments only, and notwithstanding the increased requirement for 2005, these two upward adjustments did not give rise to a higher level of expenditure to be borne by the taxpayer.