asked the Minister for Health if he is aware of the projected deficit for each health board in 1986; if he is further aware of the serious reduction in the level of service which will be necessary if they are to manage with their present allocation; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Health Board Allocations.
39.
I am aware of the extent to which the non-capital allocation which has been approved for each health board for 1986 may not meet the projected estimate of requirements prepared by the board. The Deputy will appreciate that these estimates are invariably subject to negotiation and review and when made are dependent on the anticipated rate of inflation.
As the Deputy will, no doubt, appreciate implementation of Government policy to reduce public expenditure must involve some restriction of the Exchequer resources provided for health services since the non-capital health estimate accounts for about 19 per cent of the total estimates for non-capital public services for 1986.
I would like to record my appreciation of the constructive and responsible way in which health boards have, in general, approached the task of containing expenditure within the 1986 approved levels. Inevitably some difficult decisions will have to be taken but I am confident that the measures selected by health boards for coping with the situation will be such as to enable essential services to be maintained.
Did the Minister advise the health boards that they were to cut payroll costs in institutional services? Will he accept that this could lead to the loss of 1,000 jobs in the hospital services, with resulting serious consequences?
We made a very comprehensive report to each health board on the level of resources available for 1986. We have had a long series of meetings with each health board. Overwhelmingly we have resolved those difficulties but since 70 per cent or 75 per cent of all health expenditure is in relation to the payroll, we have had to devote considerable attention to that aspect, particularly premium payments. I am glad to see that one hospital in Cork which was paying £500,000 in overtime has taken care of the situation in the budget for 1986. The position overall is quite reasonable. With an inflation rate of 3 per cent, the benefits to hospitals of reduced energy costs and the prospect of some additional moneys being available in appropriations-in-aid, we will get through 1986, with some difficulty. The level of health expenditure has been contained, despite all the difficulties we have had to face.
There is a projected deficit of £35 million.
These are mythical figures. Everybody looks for money. If you work on an inflation rate of 7 per cent you will have no difficulty coming up with a figure of £35 million.