Taoiseach has ‘full confidence’ in Reilly

The Taoiseach has expressed his “full confidence” in the Minister for Health James Reilly and his ability to tackle the €280m deficit in the health budget.

Enda Kenny once again insisted there will not be a supplementary budget to deal with the massive deficit, and said the gap will be bridged with minimal impact on patient care.

He said there was “nothing new” in correspondence between the minister and the outgoing head of the HSE, Cathal Magee, who repeatedly asked for decisions to be taken to address the spiralling overspending problem.

Mr Kenny said the minister “far from being distracted from his duty, is making serious changes to the structure” of the health services.

These would lead to “the introduction of a universal health insurance system, a one-tier system which will deliver accountability, responsibility and most of all, services for the patients who need them, based on their medical needs as distinct to what they havein their pockets,” he said.

The Taoiseach said his Government would not tolerate “a situation where every year towards the end of the year, you have the same old story, serious overruns and a supplementary budget.”

Repeating remarks made some weeks back, he said: “There will be no supplementary budget.”

Earlier, the Minister for Transport Leo Varadkar admitted it may not be possible to fully close the deficit.

“We all accept it’s not going to be possible to have no deficit at all, but they’re going to do everything they possibly can to minimise the deficit,” he said.

Asked if this would mean a supplementary health budget he said “that’s above my pay grade.”

Mr Varadkar added: “It is the case that tax receipts are running ahead of schedule at the moment but there is no guarantee that will continue throughout the year, that’s why the deficit needs to be brought under control.”

Discussions are ongoing between the Departments of Health and Public Expenditure and Reform and the HSE on options for saving money.

With pressure from the EU and the IMF on the issue, Mr Reilly must come up with a plan by October when the next visit of the bailout team takes place.

His spokesperson said Mr Reilly has concluded a deal with insurance companies to get €125m in unpaid income this year.

He said a further €10m has been saved on the drugs bill this year and a potential €70m could be saved through the greater use of generic, rather than branded medicine, when new legislation is passed later in the year.

Sick leave alone in the health service costs €280m a year while overtime payments amount to €240m.

The Taoiseach rejected any criticism of how the minister is tackling the crisis, saying he “knows what his responsibility is in respect of the delivery of the health services.”