I move:
That a supplementary sum not exceeding £565,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of March, 1962, for the Salaries and Expenses of the Office of the Minister for Health (including Oifig an ArdChláraitheora), and certain Services administered by that Office, including Grants to Local Authorities and miscellaneous Grants.
Almost wholly the need for this supplementary provision arises from the operation of the eighth round of increases in salaries and wages. Certain increases of costs have arisen for other reasons, as I shall explain, but these are a very small part of the Supplementary Estimate and they could have been met out of savings on the Vote generally.
The provision under Subhead A., covering Salaries, Wages and Allowances, is in respect of the staffs of my Department, administrative and professional. It is estimated that within the current financial year, the application of the remuneration increases to these staffs, in accordance with the increases awarded to the Civil Service generally, will cost £12,300, but against this, can be set a sum of £5,800 which will be saved as a result of vacancies in posts for which provision was made in the original Estimate. The net requirements are thus £6,500.
Under Subhead B. covering Travelling and Incidental Expenses, it is found necessary to seek an additional sum of £1,000. This is a variation such as may arise in any year due to an unforeseen increase in activity, involving more travel by officers of the Department, principally professional officers carrying out inspections.
Under Subhead G. covering Grants to Health Authorities, it is necessary to make additional provision to meet the increase in grants which follows on the increase of expenditure by health authorities in respect of remuneration of their staffs. The original provision under this Subhead proved to be very close to what would have been payable had not the "8th round" had its effect on the expenditure of the local authorities. It is estimated that increases in remuneration of local staffs will cost a total of £1,200,000. The grant payable in support of local expenditure is at the rate of 50 per cent., which means an additional sum of £600,000, but as five per cent, of the grant is withheld until final statements of expenditure have been submitted after the close of the financial year, the amount which will fall to be issued within the year ending on 31st of this month is estimated at £570,000.
The high proportion of the expenditure of health authorities which is absorbed by the remuneration of their staffs will be evident from the increase which must be faced as a result of the grant of higher salaries and wages. The total local authority expenditure of £18,130,000 on which the requirements under this subhead were originally based included £8,800,000 in respect of salaries and wages of their own staffs. The estimated addition of £1,200,000 brings this figure to £10,000,000. More than 55 per cent of the expenditure in the year 1961-62 on the health services is thus attributable to the remuneration of staffs of health authorities.
The additional funds sought under the subhead covering the supply of vaccine lymph are required to meet exceptional demands which arose following outbreaks of smallpox in Great Britain. In all, additional supplies sufficient to vaccinate more than 200,000 people were purchased from abroad, and these, together with a relatively small additional item in respect of storage, account for the full amount of the supplementary provision.
The items which I have mentioned comprise the total estimated additional expenditure and they amount to £581,900. Against this amount, it has been found possible to offset a total of £16,900 made up of £4,100 on anticipated increases in receipts under the heading of Appropriations-in-Aid, and £12,800 savings on other Subheads. These off-setting items represent relatively small variations from the original Estimates, and are such as would be expected to occur in the normal operation of a Vote of more than £9,000,000. The net amount of the Supplementary Estimate is accordingly £565,000.