I move:
That a supplementary sum not exceeding £1,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of December, 1988, for the salaries and expenses of the Office of the Minister for Health (including Oifig an Ard-Chláraitheora), and certain services administered by that Office, including grants to Health Boards, miscellaneous grants, and a grant-in-aid.
The original net Vote for health for 1988 was £1.109,944, including a capital provision of £41,030,000. This excludes an amount of £20.1 million which is being drawn from Vote 46 in respect of the general increase and other special increases under the 1987 agreement on pay in the public service.
The movement of a Supplementary Estimate for a token sum is to allow the use of additional Appropriations-in-Aid accruing in the current year. The additional receipts amount to £14.1 million in total and arise under the headings of health contributions receipts under EC regulations and the proceeds of property sales.
Apart from the additional Appropriations-in-Aid there are unexpected funds in the existing Vote provision which, with the appropriate subhead adjustments, will allow for the bonus payment of certain health cash allowances. The unexpended funds arise mainly in respect of the cost of special pay increases provided for in the original Vote which will not now arise until 1989. The total cost of the bonus payment is £0.9 million.
The Supplementary Estimate is made up as follows:
£m |
|
To meet the additional cash requirements of the GMS (Payments) Board |
13.501 |
To meet the 1988 costs associated with the refurbishment of Hawkins House, to be transferred to Office of Public Works, for work carried out on behalf of Department of Health |
0.636 |
Total |
14.137 |
Less: |
|
Additional Appropriations-in-Aid |
14.136 |
Net Supplementary Estimate |
0.001 |
The increased Appropriations-in-Aid arises as follows:
£m |
|
Additional yield from health contributions |
9.8 |
Additional EC regulations receipts |
3.7 |
Proceeds of the sale of the Health Education Bureau premises |
0.636 |
14.136 |
The additional yield of £9.8 million from this source has arisen in line with the 1988 general trend in income-related revenue. The effects of the tax amnesty and the introduction of self assessment for the self-employed are reflected in the extra yield.
A sum of £3.7 million over and above the original receipts forecast under EC regulations has arisen. These receipts are subject to currency variations and the original forecast cannot, therefore, be precise. Under the regulations in question each member state is, subject to agreement, required to meet the health care costs incurred by another member state in respect of its migrant workers, which includes pensioners, as well as the dependants of such workers.
The receipts shown in the Health Vote under this heading represent the net payment due to this country from the UK authorities. In the case of other EC States, we operate on a reciprocal non-reimbursement basis, due to the relatively small number of migrants involved. The methodology and costings on which the receipts are based are approved by the EC Audit Board in Brussels.
The sale of the premises formerly occupied by the Health Education Bureau realised £636,000. The health promotion unit which assumed the responsibilities of the bureau will now be located at Hawkins House.
It is intended to use £13.5 million of the additional Appropriations-in-Aid to meet the grant requirements of the General Medical Services (Payments) Board for 1988. As Deputies will be aware the GMS scheme or choice-of-doctor scheme is demand led. The increased user demand evident in 1988, requires that the resources made available to fund the scheme be now adjusted.
The continuing increased demand in the choice-of-doctor scheme undoubtedly demonstrates the key role which those in general practice play in the provision of health services. The importance of this role has been one of the principal factors in the drawing up of the revised remuneration package for doctors participating in the scheme.
My Department are completing the necessary arrangements to ensure that the new contract is issued to the participating contractors during next week. The new arrangements were accepted by the Government and by a large majority in the IMO's July ballot. It was clearly understood by all parties to these negotiations that the arrangements would apply to all participating doctors. I am satisfied that the new arrangements represent a satisfactory balance between the legitimate interests of doctors, management and patients alike.
Deputies will be aware of an extraordinary general meeting of the Irish Medical Organisation which took place over the weekend. In that regard the IMO have not formally communicated to me that there is any change in their position regarding the agreed introduction of the new arrangements from 1 January next.
The allocation to the GMS (Payments) Board for 1989 provides for the implementation of the new contract. The terms of the new contract will ensure a better quality and a more comprehensive and cost-effective general practitioner service. Indeed the position of the role of practitioner within the primary health care area remains pivotal. The new contract will assist, I am confident, in the delineation of the role primary care staff in general and a clear understanding of their unique role and contribution.
The revised package does not only cover remuneration for current services. It also provides for a contribution towards a superannuation scheme as well as enhanced training opportunities and nursing and secretarial support. This package is fundamental to the continued evolution of general practice as the cornerstone of an appropriate primary health care delivery system.
While the framework of the new contract is in my view most valuable, the clear provision for a comprehensive review at the end of next year and regularly thereafter provides an opportunity to take account of experiences in operating the new contract.
The purchase price of Hawkins House paid by the Office of Public Works was based on the capitalised value of the floor space previously let to the OPW and already occupied by Government Departments. This in effect meant that the additional floors previously occupied and later vacated by private tenants were obtained free of charge. The total refurbishment costs which fall due for payment in 1988 amount to £636,000.
I should point out, however, that the refurbishment costs are offset by the proceeds of property sales, both realised and anticipated, and by a reduction in the requirement for rented accommodation. As I have already said, the former Health Education Bureau premises have already been sold and the premises currently occupied by the Adoption Board will be offered for sale when the board move to Hawkins House. There will be a continuing benefit to the Exchequer commencing in 1990 due to a reduced need for office space which is currently rented. Based on present rates the letable value of the vacated rented space is about £250,000 per annum. Apart altogether from this economic benefit there will be the increased efficiency inherent in operating from a centralised location.
Adjustments between subheads of the Health Vote and within the overall level of grant available will provide for the cost of meeting the bonus payment of certain health cash allowances, in line with other long term social welfare benefits. The bonus payment, which amounts on average to 65 per cent of the normal weekly payment, will benefit some 33,000 disabled recipients and their dependants. In addition the bonus payment will also benefit those in long term care who have no means of their own and who are in receipt of the weekly spending allowance. This is an indication of the Governments commitment to giving priority to those who are financially the least well off in our society. As Deputies will see, this is a technical Estimate and I recommend it to the House.