Further 'controls' needed to curb HSE overspend, says public expenditure minister

Jack Chambers minister said overspend will affect what is available for Budget 2027

Mr Chambers said the budget overrun so far this year will 'affect what's possible for further investment in 2027' as he called for 'better discipline' on recruitment and the positions they are being recruited for, as well as 'ensuring that there's prioritisation given to frontline deployment'. File picture:Brian Lawless/PA

Public expenditure minister Jack Chambers has warned that the Government will introduce further “controls” for the HSE as its budget overspend continues to spiral.

The Fianna Fáil deputy leader said the “debate is over about whether we're sufficiently funding the public health system” and that further measures to improve the health service’s budgeting will have to be introduced.

Last week, HSE chief executive Anne O’Connor confirmed that budget overruns had risen to €580m by the end of July. This was up from a €250m overrun for the first quarter of the year, and a €400m overspend by the end of May.

Speaking on RTÉ Radio 1’s This Week, Mr Chambers warned that there had been “ineffective implementation by the HSE” of budget control measures previously agreed with the Government, and there is “going to have to be further corrective action taken within the HSE about ensuring that there's a strengthened control environment”.

“Some [HSE regions] have not upheld the level of financial management which I expect, and which has created this in-year drift,” he said.

“That's why we've taken corrective action earlier on this year with the CEO of the HSE. But there will have to be further measures taken to ensure that we have strengthened financial management. Because without that, it has consequences for Budget 2027.” 

Mr Chambers said the budget overrun so far this year will “affect what's possible for further investment in 2027”, as he called for “better discipline” on recruitment and the positions they are being recruited for, as well as “ensuring that there's prioritisation given to frontline deployment”.

Earlier this year, Mr Chambers introduced “expenditure levies” to fund budget overruns for overspending departments.

A €640m hole in the Department of Education earlier this year meant that other government departments were forced to find €446m in savings to fund a bailout.

When asked if there could be another levy placed on departments in order to address the HSE over run, Mr Chambers said cost savings measures will be sought from the Department of Health first.

“What we're doing in the Department of Health is trying to drive greater corrective action,” he said.

“That position did improve prior and during the summer, and it worsened in August.

“In the context of what's available in Budget 2027, I have to balance driving those efficiencies and what's possible in terms of the levy versus what additionality is available.” 

'Debate is over' on health budget

Mr Chambers said the “debate is over about whether we're sufficiently funding the public health system”, insisting that greater financial management of existing budgets will have to be implemented.

Elsewhere, the public expenditure minister warned that if there is an extended or indefinite deferral of carbon tax, it will impact how much money is available for retrofitting and measures around fuel poverty.

Tánaiste Simon Harris said last week that the “trajectory” of the carbon tax’s implementation should be examined following several global shocks. It is expected that October’s carbon tax increase will be further delayed, with subsequent increases implemented over a longer time period.

Mr Chambers said that “no decision” has been made, but that it will be kept under review, and the Government is “conscious, agile, and responsive to the pressure that families are under”.