asked the Minister for Health if the Government intend to implement their undertaking to have rates for health stabilised at the 1965 level; and, if so, how health authorities will be enabled to meet the deficit.
Ceisteanna—Questions. Oral Answers. - Stabilisation of Health Rates.
179.
As the Deputy is no doubt now aware, from the statement issued by the Government Information Bureau on Friday last, the Government are honouring in full their undertaking in this matter.
Is it not a fact that the public announcement gives the impression that there will be no increase in the health rate that existed in 1965, whereas in fact this is not so? As I understand it, £600,000 has been provided by the Minister as an addition to cover increases in health costs in 1967-68. Dublin Health Authority alone has an increase of £700,000. If we were to get even half that from the Minister to keep prices stable at the 1965 figure, how is the remainder to cover the whole country? I should like an explanation of that, because difficulties are arising.
I do not think the Deputy has it right. The figure of £600,000 is not the extra amount being provided this year. In point of fact, the extra amount is over £2 million. If you take what was added on for 1966-67, in order to operate the freeze as against 1965-66, you must add that figure to the £600,000 before you get the total contribution the Exchequer will be making for 1967-68.
In cases where a health authority have struck the rate, based on the assumption it would be stabilised at the 1965 figure, there will not be any deficit as far as they are concerned? They will not need extra money to bridge any gap? The Minister will provide any extra money required?
I did not say that. I want to make this clear. In regard to 1966-67, the Government gave an undertaking that the level would be frozen at the previous year's rates contribution. When the accounts eventually came in, this involved an additional expenditure of £2½ million. I will be introducing a Supplementary Estimate in order to make that available in respect of the current year. As regards next year, the Government decided they will give the same Supplementary as last year, which was about £900,000 or thereabouts, plus £600,000 over and above that to be distributed proportionately throughout the country, having regard to the existing level of rate contribution and also having regard to the undertaking in the White Paper that some formula would be devised whereby the weaker western counties, where there is a very high rate and a low yield from each pound of valuation, would be assisted. This has been worked out tentatively. It will mean that in the weaker western counties, and other counties such as Cavan, there will be an estimated increase in the rates of approximately 9d and in no case, urban or otherwise, will there be cause for an increase in the rate in excess of 1/6d.
This is subsidisation rather than stabilisation?
What course is to be taken by a health authority who have already struck their rate before the Minister made this recent announcement? They have no statutory power to bring in a Supplementary Estimate for the extra amount required.
How can this gap be met?
No. The Minister's statement at the health authority gave the impression to everybody——
I accept that.
How does the Minister regard the situation in which, last Monday morning, Louth County Council was informed that while we would be facing a general increase in the rate of 2/7d, because of a circular which was awaited and the contents of which it was sought to get by telephone, the extra increase in the charge on foot of health over the old charges as they existed would not be met and that this 2/7d would be increased by a sum that had to be worked out? How does this fall in line with the Minister's visit to Louth when we met him very cordially and when he told us there would be no falling off in the rate for health and that any increase would be met by Exchequer subvention?
When I gave that undertaking, which I agree I did give, I did so in good faith. At that time, I understood that the deficit arrangement operating in accordance with the White Paper for 1966-67 would continue in 1967-68, even though there is no such undertaking in the White Paper. The enormous increase in expenditure frankly came as a shock to me and to the Minister for Finance in respect of 1966-67 as did the size of the Supplementary Estimate of over £2 million which I had to have in order to operate the freeze for 1966-67 and the huge increase over the projected figure of £32 million to £35 million. He frankly felt that for this particular year some small proportion, at any rate, will again have to be borne by the rates. There appeared to him to be an open-end situation in which the local authorities were free to go ahead without having regard to the propriety or otherwise of various extensions of the health scheme on the basis that it did not matter, that the Minister for Finance would pay.
I do not like the prospect of asking the ratepayers at this stage to pay anything but I can see the justice of asking for some small contribution because I believe it can be an incentive to county managers and officials to prune their health expenditure so as to keep it productive and worthwhile.
Would the Minister agree that his problem is that he might next be changed to Education where he might have to make good the promises of his predecessor?
I should like to add that we shall have an opportunity on the Supplementary Estimate in the very near future of discussing the whole situation. Deputies on both sides will have an opportunity of saying what their views are about it and I shall have a more suitable opportunity of explaining my position also. In conclusion I may add the arrangements that have been made for this year are only in respect of this particular year.
The Minister hopes.
I hope in regard to next year that by that time we shall have advanced considerably towards the equalisation proposal which will mean a change in any event.
Has the proposal been clarified to the health authorities?
Yes.
Does the Minister think legislation will be necessary to enable him to proceed with this?
I shall have to look into the point.