Health budget deficit sparks conflict within Coalition

The discussion between Micheál Martin, Leo Varadkar, and Eamon Ryan has been described as 'serious' and a signal of how tense the matter has become.

Taoiseach Leo Varadkar has held talks with Tánaiste Micheál Martin in a bid to de-escalate tensions within the Coalition over the massive health budget deficit.

The matter was addressed at a Government leaders’ meeting amid fears the row could cause a major crisis for the Coalition.

The discussion between the party leaders, including Eamon Ryan, has been described as “serious” and a signal of how tense the matter has become.

It was the view of senior Fine Gael figures that there was a co-ordinated approach by Fianna Fáil to blame Public Expenditure Minister Paschal Donohoe for not granting significant additional funding for the health service.

It is understood that Mr Martin made it clear to Mr Varadkar that there was no co-ordinated attempt by Fianna Fáil to undermine Mr Donohoe.

Mr Varadkar addressed the matter with the Tánaiste after Fine Gael politicians said a narrative about Mr Donohoe was allowed to spread despite Mr Martin and Finance Minister Michael McGrath signing off on the budget.

A senior Fine Gael minister last night said Mr McGrath, who held the public expenditure position directly before Mr Donohoe, is as much to blame for the hole in the HSE budget.

“If health is carrying a huge deficit from this year into next, that’s on Michael McGrath as much as it’s on Paschal Donohoe,” the source said.

It is understood that the three party leaders discussed the health budget, disability funding, and section 39 workers.

Sources said Mr Martin and Mr Varadkar are aware they have “a problem that needs to be resolved”.

“The HSE’s public shroud-waving makes it harder to sort,” the source said.

HSE boss rows in

HSE boss Bernard Gloster rowed into the funding row over the weekend by stating that the allocation for next year is “not adequate” and that he believed an extra €2.4bn to €2.7bn would be required for 2024.

Some €22.5bn was allocated for health spending, with Health Minister Stephen Donnelly securing an extra €800m despite telling his Coalition colleagues that over €2bn extra would be needed.

It is understood that Mr Varadkar told the party leaders the tension over the health budget needed to stop.

It is expected that Mr Donohoe will address the criticism aimed at him at a media opportunity on Wednesday to launch a policy framework about menopause in the workplace.

Mr Donnelly will not be attending the health launch due to a busy schedule.

Fianna Fáil Cabinet ministers and backbench TDs are “unimpressed” over the fallout and Mr Donnelly’s department and the HSE’s public handling of the matter.