Senators will be aware that the Dáil is at present debating a motion on the health services financing for 1987, which the Progressive Democrats put down and to which the Fine Gael Party moved an amendment which commences as follows: Dáil Éireann "wishing to remain within the 1987 Revised Estimates for Health...". That is the start of the motion put down by the Progressive Democrats and is also the beginning of the amendment in the name of the Fine Gael Party.
In this House, at the instance of the Fine Gael Party, we are debating a motion which reads:
That Seanad Éireann calls on the Government to reconsider their budgetary proposals in relation to Health Services because of their serious implications for the wellbeing of the general public.
While Senator Fennell referred to the fact that we should live within our allocation for 1987 — the Revised Estimate for 1987 — it does not appear in the motion. Indeed, it is difficult to be sure of where Fine Gael — or for that matter the Progressive Democrats — stand, because last night in the Dáil the spokes-persons for both parties, while on the one hand supporting that view, kept demanding the addition of more and more expenditure to support various elements of the services, largely in the particular Deputies' own constituencies.
This is, of course, all very fine but it fails to accept that when you add a facility to one service, if the global sum is restricted, you must take from another area of the service. The track record of Fine Gael in office shows the same inconsistencies of approach which ultimately led to the split with the Labour Party. In this respect I remind the House that I am the third Minister for Health to hold office this year. First, up to 20 January last there was Deputy Barry Desmond. He left office because he could not stay in there with Fine Gael because of the inconsistencies in measures proposed by that party. In particular, he could not tolerate the prescription charges at £1 per item prescribed for these people who are deemed eligible to hold a medical card and who by that definition are the very poorest in our community. He could not accept the provision for the general medical services scheme which left it short to the extent of £25 million in the ridiculous belief that £16 million could be raised from prescription charges in the remainder of this year 1987. He knew the Health Act had to be amended and that it would take time before the charges could be implemented. Indeed his estimate was that the maximum that would be received from such charges would be £4 million and he suggested that if you were to implement such charges — because of the increased number of drugs that would be prescribed on a visit to a family doctor — there might be no saving by imposing a prescription charge.
Deputy John Boland as Minister imposed the ban on dispensing in rural areas but, significantly, although his own party in Government were pursuing a policy of financial rectitude, he did not issue the letters of allocation to the health agencies which were consistent with that approach and for which they were seeking approval. I am sure everybody here will agree that the allocations to the health boards should have been sent out as early as possible in the year. They were available on 20 January when the Estimates were published by the Fine Gael Government because Labour had left Government and they were not sent out. It is a fair question to ask why they were not sent out. I believe they were not sent out because the Government did not want to be embarrassed in the run up to the general election and the then Minister for Health accepted that there should be a prescription charge on the very poorest people in the land.
Senator Fennell referred to the chaos in the health services. I accept that there is chaos in the health services but it is caused, first of all, by the fact that the allocation for 1987 was not sent out until April. I met the CEOs and chairmen of the health boards on 2 April, gave them their allocations and discussed those allocations with them. Indeed, I might add that that was the first time the chairmen and the CEOs of the health boards were met as a group since November 1983 which again in my view is part of the problem: the total lack of consultation. The other reason there is chaos in the health services and, indeed, the reason we now are having the difficulties is the overrun of £55 million over the past two years, £36 million overrun in 1986 and £19 million overrun in 1985. In trying to effect the savings that should have been made in 1986 and 1985 problems have arisen for the health boards and for the various voluntary hospitals around the country. That is the cause of the chaos.
I assumed office on 10 March 1987 and, as I said last night in Dáil Éireann, I and my Cabinet colleagues were, to put it at its mildest, shocked to discover the real extent of the financial problems facing the country. We had to face the inherent threat that, if we did not get public expenditure under control, external agencies would step in and do it for us in a most unpalatable and clinical way. Despite those underlying financial problems, with my colleagues in Cabinet I examined the allocations proposed for the health services, added to them in certain respects, providing, for example, an extra £25 million for the general medical services which had been left £25 million short by the Fine Gael Government in their Estimate of 20 January which would have meant that the general medical services would have collapsed in the autumn of this year. I rescinded the decision to impose prescription charges and provided for out-patient and in-patient charges supported by a voluntary health insurance scheme, moderately priced. In this respect I made absolutely sure, by the list of exemptions which I included, that there would be no hardship imposed on anyone. I also restored the right of doctors working in remote rural areas to dispense medicines for those living at a distance from pharmacies.
A great deal of agitation and disturbance in the health services has been caused by the sensationalism of certain elements in society which to a significant extent has been added to by a degree of immoderate and unsubstantiable statements by people within the health services who should know better. I would be the last, as I have said on a number of occasions recently, to deny any group or individual person the right to make known their concern or to protest in a reasonable way. I do, however, find it very disturbing when there is a deliberate attempt to cause widespread public unease by suggesting that health services are being underfunded to such an extent that we cannot provide the services necessary to meet the essential needs of the people. Indeed, I think everybody here will agree that with an allocation of £1,300 million and over 55,000 people working in the services, we are well equipped to provide the necessary level of service for the people.
Senator Fennell referred to the rape crisis centre. It is important to point out that it was never the intention of the Government that the rape crisis centre should close. It was not the Government who made the decision to close it; it was not the Minister for Health who made the decision to close it; the decision was made by the board of the Rotunda Hospital. The board of the Rotunda Hospital must have seen it as low in their priorities when they decided that they would close it as an option. Indeed, it is fair to say that the Master of the Rotunda and Dr. Woods knew at the time they were criticising the Government for its closure that they themselves were a party to the view that the centre, as far as child assault was concerned, should be moved out of the Rotunda because the Rotunda is for adults and they believed the centre would be better in a child hospital location.
We are spending over £1.3 million on the services this year — in fact, £16 million more than was spent last year. In sending out the 1987 letters of allocation to health boards and voluntary hospitals I gave clear and specific guidelines to the agencies on how they should frame their budgets. I was concerned to ensure that the basic fabric of our health care system should be preserved while, at the same time, ensuring that the best possible service should be delivered within the amounts available.
The instructions to agencies required them to make necessary spending reductions in the institutional area, and in particular in the acute hospital sector. The overall bed provision in our acute general hospitals is widely accepted as more than adequate by reference to international norms. I directed agencies that community care services should be protected to the greatest extent possible and I laid a particular emphasis upon key services for the old and housebound, such as community nursing services, services for the mentally handicapped, home help services and meals-on-wheels, child care services, particularly day care and pre-schools services for deprived and disadvantaged communities and after care programmes for children leaving long term residential care.
I asked that adequate provision should also be made for boarding out payments to reflect the trend towards increased numbers in foster care and that the health boards should maintain their expenditure on these services at least at the 1986 approved levels in real terms. This approach is in keeping with the modern view about the nature of health care and with expressed governmental policy to protect primary care within community rather than hospital-based treatment. The guidelines I have referred to had regard to the overriding need to maintain frontline staff, who provide a service directly to the sick in our community, at an acceptable level.
I did not think it unreasonable that the letter of allocation should require the health boards and the voluntary general hospitals directly funded from the Department to face up to the harsh reality of the need to bring their expenditure into line with what their allocations could realistically support instead of, as in previous years, incurring overruns which essentially went unchecked. These overruns are, in fact, the root cause of our present difficulties. As I have already pointed out, the overruns of £55 million in the last two years are causing the difficulty at present.
An examination of public services generally by the Government led immediately to the conclusion that, to a very significant extent, the problem of the numbers employed in the public sector has not in reality been tackled in recent years. For instance, when I took office there were 62,000 people employed in health boards and other agencies to provide health services. Ten years ago there were 51,000. I find it difficult to accept that this increase in numbers has produced a corresponding improvement during that time in the quality of the service delivered to the patient. Given the financial difficulties facing the economy at the present time this clearly is a situation which could not be allowed to continue.
In introducing the budget the Minister for Finance announced that no public service vacancy could be filled without the express approval of the Minister for Health with the consent of the Minister for Finance. After consultation with the Department of Finance it was decided that, because of the late stage in the financial year and the random effect on services by closing down all vacancies as they occurred and having particular regard to the sensitivity of health services it was agreed that a package of (i) non-filling of some vacancies; (ii) reduction in current temporary employees and (iii) reduced scale of locum cover, to achieve an overall reduction of 2,000 posts by 31 December 1987 was agreed.
There has been considerable inaccurate public comment of late, and it was repeated last night in the Dáil, to the effect that clerical and administrative staff in the health services have been dealt with more leniently than other categories of staff as a result of the economy measures being taken by health agencies and that these grades have been spared at the expense of nursing and medical posts. I want to nail these false statements.
The factual position is that health agencies were instructed to reduce overall staff numbers by a number of means and that these reductions were as far as possible to be spread evenly across the grades. Clerical and administrative grades account for about 10 per cent of all staff employed in the health services. Less than 2 per cent of the total staff of health boards are engaged in central administration.
So far as the remainder are concerned, they are involved in delivering vital services directly to the public. They include community welfare officers, staff involved in determining eligibility for medical cards and those involved in the making of payments under the drugs refund scheme and the payment of cash allowances to the disabled and the handicapped. They pay salaries, wages and pensions; they order goods and supplies, maintain medical records and schedule out-patient clinic appointments. Senators will also be aware that the task of collecting the new out-patient and in-patient charges which are of such vital importance to the financing of the services this year will also fall on the administrators. It is clear, therefore, that the scope for widespread reductions in the administrative grades employed in the health service has been considerably exaggerated.
I am satisfied on the basis of the most recent information available that the numbers in clerical-administrative grades will be reduced proportionately consistent with the many important functions which they have to carry out.
My task now is to shape a health service which is affordable and sustainable. It seems to me that there are two critical areas to be addressed. We must have an acute hospital system which is geared to our ability to pay, which is effective and caring, and which is efficient. Alongside it and linked to all vital points, we must have a primary health care system which is capable of doing many of the things now done in hospitals. I want to elaborate on these two points.
In adapting the acute hospital system to our present circumstances, we must take a number of important decisions.
We must decide on the level of funding we are prepared to devote to this sector of the service. In making this decision, we must ensure that there are adequate funds for other services including primary health care. We must organise the system so that each hospital within it is medically viable and gives a quality service in a businesslike manner.
We must also quickly develop a form of primary health care which provides a real and viable alternative to hospital care. Such evidence as is available to me does not suggest that this is now the case. It can hardly be, as long as the general practitioner services remain divorced from other services.
I am satisfied from my own experience, from the many reports which have been completed on this subject and from the information available to my Department that there is scope for a significant reduction in the number of acute beds. However, we will only get the real benefits from such a reduction if the beds are distributed in viable hospitals, each with a clear role and part of an integrated system. The proposals for reductions which have now been put before the Department do not, in a number of cases, fit with what will be our requirements in the medium and the long term.
In my recent address to the Association of Health Boards, I made it clear that I do not believe there is any particular merit now in reducing the number of health boards. That does not mean there is not room for change, for innovation and for adaptation within the existing framework.
We can now move quickly to streamline our acute hospital system. Starting next week, as I announced last night, officers of the hospital services division of my Department, with assistance from Comhairle na nOspidéal, will commence consultations in each health board area. As Senators are aware, a team of senior officials of my Department have already been to each health board area and, indeed, to each voluntary hospital and have brought back a profile of how each of these agencies intends to effect the savings necessary this year. At present, we are studying the findings and we will be looking at them to ensure that there will be a rationalised health service in place.
Next week they are going again to meet with health board officials. They will meet with the management of health boards with the voluntary hospitals and the staff interests involved to devise a plan for each area. When that is done, the results will be considered globally in the Department to ensure they are integrated at regional and national levels. I believe there should be a consultative process in the health board areas where the health boards, the voluntary hospitals and those interested would be able to come together and would also provide an opportunity for the people working in the services to have an input into how they believe funding should be allocated within their own area to the various disciplines within the service.
Following the receipt of information from our own officials and the results of the study within the health boards between the various agencies involved we then convene a national conference of the various interests affected before finally deciding upon the definitive national plan. Because of the implications, not least in the making of allocations in respect of 1988 and subsequent years, this plan will have to be settled by the end of July.
We do not start from scratch. First of all, I must make it clear that in a number of health board areas there is no great attention required to bring them into line with what is essentially needed. They have set their own houses in order. Secondly, we have available from Comhairle na nOspidéal a great many helpful reports and recommendations. Thirdly, my Department have already undertaken a considerable amount of work in analysing the implications of the general course which I am advocating.
There are, as Senators will know, special problems in the urban areas of Dublin, Cork, Limerick and Waterford. There is, particularly in Dublin and Cork, an urgent need for better co-ordination between the voluntary hospitals and between those hospitals and the health boards. As Senators are aware, each voluntary hospital in Dublin, for example, received their allocation and then decided within their allocation how they would effect the savings this year and the services they would provide. It is very important that there should be a rationalised service and we are looking at that. For example in St. James's Hospital the board decided to close the bone marrow unit. It was not the intention of the Government that that unit should be closed. That decision was made by the board. They believed that was the decision they should make. We will be looking at the profiles presented by the various voluntary hospitals in Dublin and ensuring that there will be a proper and rational service in the city of Dublin.
I have asked the Department to proceed immediately with consultations with the various authorities in the health board areas to work out suitable arrangements for co-ordination of existing services and appropriate involvement in the future rationalisation of the acute hospital system. I am studying work which has been carried out on the adequacy of the primary health care elements of community care services. I envisage that in one or two areas, we will get some pilot schemes under way as soon as possible.
The purpose of the schemes will be to test, in practice, the extent to which alternatives to hospital care can be developed and to work out the best working relationships between hospitals and community based services. I will be asking for the wholehearted support of all concerned in the implementation of these pilot schemes. I believe that to have pilot schemes, community care and primary health care is the right way to proceed. It is important that, when we put a major comprehensive primary health care scheme in place, it should be one suited to the needs of the Irish people. We do not want to import one from another country. We also want to ensure that it will conform to the needs of people in the inner city areas, in remote rural areas and in rural towns. For that reason, I believe we should have pilot schemes in operation and then evaluate how they are working before finally putting a major primary health care scheme in place.
Finally, I am preparing a statement on our priority needs in the institutional care of the chronically sick and the terminally ill. We need this quickly so that we can properly explore all reasonable options in the rationalisation of the acute services. It has been very apparent to me over the years as a health board member and as Opposition spokesman on health matters that the funding of the health services needs to be given a detailed examination. The two months I have spent as Minister for Health deepened that conviction. I have, therefore, with the Government's approval, made arrangements to establish a broadly based review group to examine the appropriate level and sources of funding consistent with the maintenance of an equitable, adequate and comprehensive health service. I will be announcing the names of this group within two weeks. I will be asking the group to report as soon as possible.
In the two months I have spent in office I have worked very hard and I think, with all due modesty, that I can reasonably say I have got a grip on the situation — a situation which, particularly in the area of financing, has become very confused because of the wrangling in Government between the Fine Gael and Labour Parties leading to their ultimate break up. I think I know with some definition where I am going. In that period I have introduced an amendment to the Health Act and debated the regulations made to impose the out-patient and in-patient charges, and other motions including Adjournment debates relating to the so-called health cutbacks.
I have had to devote time to preparing very necessary and delayed childrens legislation and I have introduced the AIDS information campaign which I am glad to say is going extremely well. I might say in this regard that I was heartened to learn at an EC Council of Health Ministers meeting last Friday how well this country's campaign measures up to those being undertaken elsewhere.
I would, therefore, urge that when this week's debates and discussion in both Houses of the Oireachtas are finished, I should be allowed without further distraction to proceed in a rational and sensible way to tackle the problem of the health services.
It is my intention now to give intensive study to the ways and means through which we can come to grips with the problems which must be tackled. I will do so in the full knowledge that overall financial parameters must, for the benefit of the country, remain as they have now been set. I believe I can meet the challenge and that, given reasonable co-operation on all sides, we can emerge out of the present phase with a leaner, fitter and more effective health service.