THE DECEMBER budget will have a “major impact” on the public health service next year, Minister for Health Mary Harney said yesterday.
Speaking ahead of last night’s midnight deadline for applications to the HSE’s voluntary redundancy and early retirement scheme, the Minister refused to put a figure on how much would be cut from the health budget but warned that it would be “very high”.
“Obviously much depends on the outcome of the redundancy package,” she said.
“But clearly it will be substantial, and whether it is €600 million which is the lower figure or whether it is higher, it will be a major challenge for the HSE and the public health service next year.”
Commenting on the size of the health budget in relation to overall State spending, the Minister for Health said that the cut “has to be very high”.
“Obviously if you’re talking about an adjustment of €6 billion – and health accounts for nearly a third of Government spending – it will have a major impact on the public health service,” Ms Harney said.
“I want to prioritise areas that don’t affect patient care such as the input costs,” she said.
Highlighting areas where cuts are most likely to be targeted, Ms Harney cited non-core areas, such as medical supplies which she said cost in the region of €3.2 billion annually.
Ms Harney also said a “big reduction” would be required in the cost of drugs and in non-core pay, which she said amounts to more than €1 billion.
The Minister said that these were the areas the Government was concentrating on but she refused to be drawn on her assertion last month that cuts in health service funding next year could be up to €1 billion.
Calling for implementation of the Croke Park agreement on public service pay and reform “as soon as possible”, Ms Harney said the health service was facing into major challenges next year.
“Outdated work practices, redeployment, flexibility, all of the things that are central to the Croke Park agreement” need to be addressed, she said.
