Dáil Éireann debate -
Wednesday, 21 Oct 1992

Vol. 424 No. 1

Written Answers. - Health Board Budget Deficits.

Brendan Howlin

Question:

117 Mr. Howlin asked the Minister for Health if he intends to introduce a supplementary estimate to meet the budget deficits of health boards; the extent of the overruns on allocated expenditure for each health board for the first six months of 1992; and if he will make a statement on the matter.

Bernard Allen

Question:

136 Mr. Allen asked the Minister for Health the steps, if any, he proposes to take to deal with the massive overrun in spending by health boards this year which shows that health services are heading for a deficit of £40 million in 1992; and if he will make a statement on the matter.

Minister for Health (Dr. O'Connell)

I will be seeking a Supplementary Estimate to cover expenditure incurred by the boards which could not be provided for in their original non-capital allocations or has resulted from increased costs on demand led schemes. The extent of the Supplementary Estimate cannot be finalised until further information is available on certain aspects of the expenditure.

The main items coming within the scope of the Supplementary Estimate will be:

—General Medical Services Scheme, mainly increased cost of drugs;

—increased costs arising on the community drug schemes and the disabled person's maintenance allowance schemes;

—increases in costs of medical indemnity insurance for medical staff in health agencies;

—provision to cover miscellaneous costs, for example, costs of HIB vaccination and services for Bosnian refugees.

Health agencies review the position on an ongoing basis to ensure that expenditure is in line with the approved budget. Where, however, expenditure is running ahead of the approved budget, boards are required to take appropriate corrective action. The Deputy will understand that the position as indicated in relation to the first six months must be interpreted in the context of intended corrective action being implemented by boards and the effect on expenditure of the normal seasonal reduction in activity during July, August and September. There also tends to be a reduction in activity and expenditure during December.

The figures for the first six months are set out in the following table which I propose to circulate in the Official Report. They reflect the net overspend at that date, after allowance has been made for the anticipated effect of the adjustments in allocations likely to arise out of the Supplementary Estimate. The precise details of each Board's adjustment has yet to be finalised.

In my discussions with the health boards I have made it absolutely clear that they are required to maintain expenditure within the approved allocation.

Net Overspend by Health Board at end-June, 1992.

Health Board
	£m
Eastern	0.500
Midland	0.470
Mid-Western	0.470
North-Eastern	0.560
North-Western	0.420
South-Eastern	0.380
Southern	1.300
Western	—
Total	4.100