asked the Minister for Health whether he is aware that the ending of food subsidies will result in a marked increase in the expenses of local authorities; and, if so, whether he proposes to take any action to avoid a resulting increase in rates.
Ceisteanna—Questions. Oral Answers. - Removal of Food Subsidies.
Mr. O'Higgins
I am aware that the modification of food subsidies will cause an increase in the cost of maintaining local authority institutions. By the operation of the Health Services (Financial Provisions) Act, 1947, local health authorities will be recouped from the Vote for my Department all or part of the increase in their current costs over the costs of the corresponding services in the year ended 31st March, 1948. The proportion of the increase recouped to a health authority is dependent on the relative levels of its expenditure on recognised services in the year 1947-48 and in the current year, but the minimum rate of recoupment is 50 per cent.