asked the Minister for Health if he will outline the control he and his Department have in the spending by each health board of their annual allocation.
181.
Written Answers. - Health Boards Expenditure.
48.
asked the Minister for Health the authority or latitude the chief executive officer of a health board has in allowing a financial over-run in a particular year; if he can curtail such activity; if guidelines have been issued in recent years in such cases; and the details in each case.
I propose to take Questions Nos. 48 and 181 together.
Section 31 of the Health Act, 1970 limits the expenditure which can be incurred by health boards. It also requires the chief executive officer to inform both the board and the Minister for Health, if he is of the opinion that a decision or proposed decision of the board would incur expenditure in contravention of this section. This control is further strengthened by section 33 of the same Act, which allows the Minister for Health to lay down conditions and give directions in regard to borrowing of money by health boards.
I have in the current year made an order under section 31 in respect of one health board, which has not, as yet, agreed a budget within the expenditure limits set in my Department's letter of allocation.
In order to contain expenditure within the specified limits, and at the same time, to ensure that adequate services are provided, a chief executive officer requires the full support of the board members in determining budgetary strategy. In the absence of such support, or suitable alternative measures, a chief executive officer must take discretionary action open to him. This action, which might include the disemployment of a large number of key temporary staff and the unduly widespread application of the severance packages, could result in services being affected in a relatively unplanned way. It is preferable, therefore, that boards agree a plan of action that will minimise the adverse effects of the necessary measures on service levels.
It is incumbent on any Minister for Health to ensure that all controls available to him are utilised in preventing unapproved expenditure being incurred. I have ensured that such controls were exercised in 1987 and will be exercised in the current year.