Dáil Éireann Debate, Tuesday - 1 May 2012
678 Deputy Caoimhghín Ó Caoláin asked the Minister for Health the decisions made in relation to the health budget in budget 2010, budget 2011 and budget 2012; and if he will make a statement on the matter. [22007/12]
Amharc ar fhreagraOur country has suffered a significant economic crisis which has led to a large fall in Exchequer revenues. Tax revenues fell from €47.25 billion in 2007 to €34 billion in 2010, a fall of 28% in just four years. We are now endeavouring to re-build our revenue base but we do not have the resources to fund all the services that we would like to provide. It is the Government's priority therefore to ensure, to the greatest extent possible, that frontline services are protected while ensuring that patient safety remains the highest priority. The challenge for the health service has been to reduce the cost of providing care whilst maintaining and developing services to the maximum level possible within the available resources. The funding of the health services has been considered in the overall context of the state of the public finances, the need to control public expenditure and to meet the fiscal targets set out in the Programme for Government.
The 2010 Budget for the health services provided for €659 million in pay savings and €400m in non-pay savings. The pay savings of €659 million took account of general pay reductions, and higher reductions for those on higher pay on foot of the Report of the Review Body on Higher Remuneration along with savings associated with the moratorium on recruitment and promotion. The non-pay savings of €400 million concentrated on areas which would not have a significant impact on front line services, such as reductions in drugs costs, further economies in areas such as procurement, and improved private income collection by public hospitals.
In 2011 further price reductions were applied in relation to pharmaceuticals, to achieve full year savings of €200 million in the cost of drugs. Further reductions in GP fees under the Financial Emergency Measures in Public Interest Act 2009 were applied, and the charge for treating private patients in public hospitals was increased by 21%. Along with further procurement economies, and reductions in pay as a result of the voluntary exit schemes, the objective was to mitigate as far as possible against affecting front-line services.
