Leo Varadkar ‘not contemplating any cutbacks’ in health service next year
Mr Varadkar rejected opposition claims officials may have no other option than to reduce services in the second half of the year to stay within budget as they no longer have a supplementary budget option to fall back on during the launch of the HSE’s service plan yesterday.
Speaking during a packed press conference at Dr Steevens’ Hospital in Dublin, Mr Varadkar said while the plan is challenging “there are financial risks in any budget or service plan”.
He said the HSE “has been very transparent” about the difficulties it faces and “has put them out there in black and white for all to see”, but stressed that despite the issues “we are not contemplating any cutbacks”.
Mr Varadkar said instead of potential service reductions the only options that will be considered if the HSE fails in its attempt to come within budget next year will be moving funds from other areas of the system to address demands, “deferring” new programmes or potentially using money from the 2017 budget to address the shortfalls.
Other possibilities previously outlined by the Department of Public Expenditure and Reform as a way to replace supplementary budgets are cuts, new taxes or borrowing money from other departments.
However, Mr Varadkar insisted the options he is considering do not represent cuts and “this budget is built in such a way that it will be stuck to”.
Asked how this is the case as the HSE service plan underwent significant last-minute changes in the 24 hours before it was launched — including a €30m cabinet intervention to reduce medical card reductions from 125,000 to 50,000, Monday’s deal with the Irish Nurses and Midwives Organisation and staff pay increment alterations — Mr Varadkar said these significant funding changes will not push the system over the financial edge.
The minister said while “the budget changed quite a number of times in recent weeks” this is “always the case” and that it is “the nature of spending”.
He said “projections are not always right” and that issues that are “hard to predict” like “the number of babies being born” can impact on demand, adding that the system is prepared to make changes without implementing cuts as required.
In a press statement released at the launch of the HSE service plan Mr Varadkar focussed on the positives, stating that almost €100m will be available next year for new developments.
He said this is “the second year in which additional exchequer funding has been made available” and that it is “very welcome at a time of increasing demographic pressure”.
