Funding free hospital services
Browne questioned how the proposed hospital-service extension and other health improvements would be funded, challenging the use of health contributions and asking where the revenue would go. Haughey said services would be funded through taxation and contributions, with all revenue spent on health, and disputed Browne’s account of the scheme’s purpose and costs.
asked the Minister for Health if the proposed extension of hospital services, free at point of use, will be funded (a) from taxation; or (b) contributions by insurance contributors.
Comment on this
The total cost of the hospital services in 1979 will be funded by a combination of funds provided both from taxation and health contributions. Liability to pay health contributions is not confined to those insured under the Social Welfare Acts. It is not possible to indicate which particular level of the services will be met from each source.
Comment on this
At 1 per cent we estimate that it will bring in £30 million. The total bill is £400 million.
Comment on this
But the extension of the scheme which the Minister is proposing would be something about £8 million or £10 million. Is that correct?
Comment on this
At the present estimate, yes. That is for the hospital service only but there are other improvements.
Comment on this
Therefore, the Minister is raising £30 million in order to fund an £8 million scheme?
Comment on this
What does the Minister propose to do? Will this money be spent exclusively on health services?
Comment on this
The Minister said that the cost of the dental service would be £1 million and I should like to know what the additional money will be spent on.
Comment on this
I did not say that. The Deputy asked me if improvements in the dental services would be a matter of £10 million, £30 million or £40 million and I told him that it would almost certainly be under £10 million. I went on to add that for £1 million or £2 million we could achieve considerable improvement in the present situation. I further added that the real problem is personnel and not money.
Comment on this
Is it not a fact that the Minister is raising £30 million for the extension of stated services, dental, general practitioners and hospital services?
Comment on this
It is not a net £30 million. The existing health contributions bring in £15 or £16 million.
Comment on this
The case we have attempted to establish is that the Minister for Finance has told this Minister that he cannot continue to get the same amount of money from Central Funds and that is why he has introduced this insurance scheme to raise money.