asked the Minister for Health if the figure of £12 million deficit announced by him during the debate on the supplementary Estimate is the projected deficit figure for 1 January 1987; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - Department of Health Deficit.
25.
The £12 million deficit referred to by the Deputy is, in fact, the combined bank overdraft level of all health boards on Thursday, 27 November 1986. As explained previously, the Department of Health are reviewing individual board's needs on a weekly basis and have met their requirements through a mix of cash and overdraft cover. The level of overdraft reached on 27 November 1986 represented only 1.6 per cent of the health boards' combined approved expenditure of £742 million, excluding the 25th round and special pay awards.
My question asked if £12 million was the projected figure for 1 January next. Is the Minister telling me that the deficit will not be higher than £12 million on 1 January?
On 1 January the new allocations will come into operation. It is customary around that period that deficits drop sharply. The question of the transfer of balances comes into operation at that time of the year also. I would say that the deficit will go higher than £12 million, but we should bear in mind that one is talking about £12 million and a figure going up to the best part of £20 million throughout the month of December. That would be for a very short period of two or three weeks, or perhaps one week. One is talking about a total expenditure of £750 million and this is only 1 per cent up or down. As the Deputy well knows, a health board has an authorised level of overdrafting accommodation. The deficit may take up only one-third or a half, but at some time it may take up the whole accommodation. As of 27 November last, it was £12 million. I expect that it would grow and then taper off as we come into next year.
Is the Minister aware that each CEO has told the boards that the combined deficit will be approximately £30 million this year? Would he not consider it misleading to select one day, 27 November, and tell us that because it was £12 million on that day, anybody who said that it would be £30 million, to use his own words, was working himself into a frenzy and that the Minister's statement had put that kind of political flurry into a correct perspective? Now the Minister accepts that it will be higher than £12 million and the CEOs and the health boards say it will be as high as £30 million.
It varies. Even in December the total has varied from £12 million up to £18 million or £19 million and back down again. For example, on Tuesday, 2 December, the total was £12.9 million, while on 27 November it was £12 million. There is a very sharp difference between the authorised approved overdraft, which is up to £30 million for the health boards, and the actual take up. We shall not know the position until another fortnight has gone by. However, the health boards, between them, have authorised overdraft accommodation of about £35 million. So far they have taken up figures varying between £12 million and £15 million and back down to £12 million. I should think it will be higher by the year end.