THE HEALTH Service Executive (HSE) has said it is “highly unlikely” it will be able to achieve spending cuts of €800 million in 2010 as directed by the Department of Health without implementing policy and legislative changes.
A spokeswoman for the HSE said the executive had delivered cost reductions of more than €280 million in 2008 and it had set a target of €530 million in savings in 2009 without affecting the level of services offered to the public.
“While the HSE is working through the various options, it is highly unlikely, given the cost reductions already factored into its business plans and the imperative to protect services, that the additional savings required could be achieved by operational efficiencies alone. Policy and legislative changes may also be required if service levels are to be protected,” she said.
Labour health spokeswoman Jan O’Sullivan said the statement was an acknowledgement that the HSE could not implement the level of cuts required by the department without affecting services.
The instruction for the HSE to draw up plans for €800 million in cuts, as reported in yesterday's Irish Times, was an "ominous development", she said.
“Services in many areas have already been pared back to the bone as a result of earlier cutbacks, and a further spending reduction of this scale could bring some services to their knees.”
Ms O’Sullivan said the letter, sent by the department to the HSE, appeared to make no provisions for the protection of front-line services. Spending cuts on this scale could only mean a reduction in key services or additional charges. “Savings should be made first and foremost by reducing the excessive numbers employed at middle-management level, rather than by reducing or scrapping front-line services,” she said.
A spokesman for Siptu said the directive to plan cuts would affect essential services further.
“Siptu are shocked that the department are continuing to insist upon such savage cuts which will lead to the decimation of the already stretched services offered to the public.”
He added: “We believe that the Department of Health and Mary Harney are trying to undermine the public health service, thus preventing it from offering an effective service which the public have paid for.”
A spokesman for Impact said it would be seeking guarantees from the Government on staff numbers and incomes if it wanted staff to implement such substantial cuts.
A spokesperson for the department said it had no comment to make on the estimates process as it had not yet been finalised.