Dáil Éireann debate -
Thursday, 14 Apr 1994

Vol. 441 No. 3

Written Answers - Overdraft Statistics.

Edward Nealon

Question:

22 Mr. Nealon asked the Minister for Health the overdraft carried by each health board and voluntary hospital at the end of each month for the past 12 months; the extent of moneys owed to each health board/hospital by his Department in the same period; and if he will make a statement on the matter.

Minister for Health (Mr. Howlin)

Information in relation to the overdraft facility available in respect of the last 12 months, and the balances due up to approved allocation, for each health board and voluntary hospital are shown in the tables which I will circulate in the Official Report.

As regards overdraft, my Department reviews the position on a quarterly basis, in consultation with the major banks. My formal approval is required by health boards and a small number of hospitals to the overdraft facility. In the case of the majority of the voluntary hospitals, the facility level is a matter for agreement between each hospital and its bankers. However, the banks will only approve facilities which are consistent with the approved expenditure allocation notified by my Department. The overdraft levels indicated represent the maximum levels approved. Overdraft, by its nature, is a fluctuating source of working capital, and actual overdrawn balances may fluctuate considerably from one month-end to another due to timing differences in cash inflows and outflows.

The amounts owed by my Department to individual agencies are calculated at the end of each calender year. The position in respect of each of the agencies in question as at 31 December 1993 is shown in the tables. It is intended to eliminate these balances using the normal annual balances provision available to my Department, together with the additional £100 million injection announced in the budget. I anticipate that formal agreements with each agency in relation to the refinancing package will be in place shortly, which will allow the clearance of all of these balances within the current month. Balances which arise at the end of 1994 should equate with the agencies' approved level of normal working capital, and these will be cleared early in January 1995. This arrangement will continue for future years.

Balance of Allocation Unpaid to Health Boards as at 13th April 1994.

Board	Balance due up to approved expenditure
	£m
Eastern	27.197
Midland	7.480
Mid-Western	8.435
North-Eastern	8.009
North-Western	11.333
South-Eastern	12.805
Southern	13.627
Western	13.507
Total	102.393