Extra €111m to be spent on health

Health sectorAn extra €111 million will be spent on capital projects in the health service next year over and above what was announced in the Estimates.

This brings to €586 million the amount now allocated for capital works in the health sector in 2005 but details of how most of this money will be spent will not be announced until next week.

Figures published as part of Budget 2005 yesterday show the exchequer will invest less money in capital spending - on buildings and equipment - in the health sector in 2006 and 2007 however. Instead it will depend on top-ups from the private sector. In 2006 and 2007, for example, exchequer funding for capital projects in health is projected to remain static at €580 million but funding from public private partnerships is projected to amount to €50 million in 2006 and rise to €75 million in 2007.

The Tánaiste and Minister for Health, Ms Harney said Budget 2005 provided the essential resources to support the major reform agenda in health. "We are investing substantial additional public money in this area while at the same time encouraging the private sector to come forward with investment to complement exchequer spending," she said.

"When people ask me: 'how will we deliver more nursing home places, or improve disability services or free up A&E?' I tell them, a good health service will first and foremost require a healthy economy that remains strong, vibrant and successful. That's exactly what this Budget aims to sustain," she said.

Overall, some €11 billion will be spent on health next year, with €50 million of this due to be generated from increased hospital bed, A&E and other charges announced in the Estimates.

Other measures planned for the health sector next year, including the dissemination of 200,000 doctor-only medical cards, were also announced on Estimates Day.

Projections contained in Budget 2005 indicate health spending will rise to €11.7 billion by 2007.. Various representative groups in the health sector including the Irish Medical Organisation, ASH Ireland and the Office of Tobacco Control last night expressed disappointment at the failure to increase the price of cigarettes in the Budget which they say would have helped improve public health. Alcohol prices should also have been increased, the IMO said.

The Irish Nurses Organisation said it was disappointed and frustrated at the failure of the Budget to bring forward initiatives to address the shortage of nurses and midwives which continues to undermine the Irish public health service.

Fine Gael's health spokesman, Dr Liam Twomey said the Government seemed set to attempt to make up for shortfalls in capital funding in the years ahead by seeking money from the private sector, but by its own admission progress in this area had been slower than envisaged.

While it was his suggestion to introduce doctor-only medical cards, he believed they should be a short-term measure to help low income families access GP services.