I propose to take Questions Nos. 16, 73, 92, 95 and 221 together.
The total amount of approved net expenditure for years prior to 1993 as yet unrecouped by my Department is £51.767 million. This was the position as at 31 October and has remained unchanged since 31 May 1993. The details for each board are as set out in the table which I will circulate with the Official Report.
Since taking office I have been acutely aware of the difficulties being experienced by health boards in relation to cash management and of the impact of these difficulties on suppliers. These problems have arisen because of excess expenditure incurred by health agencies between the years 1984 and 1992. I have received representations from individual creditors and trade associations on the matter. The problem has also been raised at the Committee of Public Accounts and by the Task Force on Small Businesses. I am also fully aware that the current position creates a number of serious difficulties for creditors, particularly for smaller enterprises.
Therefore, I am pleased to inform the House that I have now agreed a refinancing package with my colleague, the Minister for Finance, which will address the entire problem. The refinancing package will put health board and hospital finances back on a sound footing and will ensure that the agencies' business can be transacted on the appropriate fair and efficient basis. The details of the package are being finalised. I am confident that we will see a significant and permanent improvement in the position from 1994 onwards.
A number of additional measures are being put in place to ensure that the problem does not arise again.
Health Board Balances as at 31 October 1993 in respect of approved net expenditure.
Health Board
|
Balances Outstanding
|
|
£
|
Eastern
|
15,044,653
|
Midland
|
3,440,916
|
Mid-Western
|
4,105,902
|
North-Eastern
|
4,333,161
|
North-Western
|
4,600,285
|
South-Eastern
|
6,333,549
|
Southern
|
6,845,170
|
Western
|
7,062,991
|
Total
|
51,766,627
|