asked the Minister for Health whether he is aware of the growing crisis in hospital administration in this country as a result of Government cutbacks; and the action he proposes to take in this matter.

I am not aware of any such crisis. Discussions are continuing at present with health boards with a view to ascertaining the extent to which economies can be made without affecting vital services. When these investigations have been completed, decisions will be conveyed to all health agencies as to the amounts of the allocations which can be made available as well as the conditions which will apply.

(Cavan-Monaghan): Does the Minister agree that this year's estimate for the country's health services provides for an increase of less than 4 per cent on last year's and with inflation, to which this Department are especially sensitive, there will either be a drastic cutback in services or an almost immediate Supplementary Estimate?

As happened last year, the Deputy will be disappointed again this year. Last year we made economies following detailed in-depth discussions with the health boards. We are engaged in that process again this year. It is a process which we have to undertake. We are reaching agreement on economies which will not affect the level of services.

Did the Minister say that this year, like last year, the Department will be able to make economies which will not affect services on the basis of a budget increase of only 4 per cent? Are we therefore to say that the previous Minister for Health and the health boards were extremely wasteful?

First of all, I will correct the Deputy's percentages. In a question which I answered earlier this afternoon, and both Deputies were in the House, I pointed out quite clearly that the overall increase is 9.3 per cent. The Deputies are not taking into consideration the non-recurring element, back-pay particularly, in last year's outturn. The figure is 9.3 per cent globally, and only one-third of the total is in the non-pay area, the area during the current year to which inflation would apply. I have told the Deputies that the services will be maintained.

Will the Minister explain to the House how, in operating on an increased budget of 9 per cent, to use his figure, and with inflation running at 18 per cent at least, the Government propose to match these sets of figures and not reduce services? If he is giving an assurance that services can be maintained through economies, may we not reasonable infer that there has been wastage and mismanagement in previous years under the former Minister for Health?

In the first instance inflation is not running at 18 per cent currently.

(Cavan-Monaghan): What is it?

The expected inflation rate at the end of the year is a matter of conjecture at this stage. Certainly, inflation is not currently running at 18 per cent.

After today's news it will be higher.

I have said the services will be maintained. I would point out to the Deputy that when they left office ——

Answer the question.

Will the Deputy please allow the Minister to reply without interruption?

When the National Coalition Government left office——

The Minister is out of tune now.

When the National Coalition left office a sum of £350 million to £360 million was being spent on the health services. Now we are talking of expenditure well in excess of £700 million. I think Deputies will agree there is an onus on me as Minister to ensure that any economies that can be made in that area, particularly in relation to increased fuel costs and other areas like that, must be made.

(Cavan-Monaghan): There is an onus on the Government to introduce an honest budget and honest Estimates. They have not done that.

I am calling on Deputy Cluskey.

I wish to refute that suggestion entirely and also Deputy Quinn's suggestion. I ask him to read the budget speeches before he makes such statements again.

There is a credibility gap.

The Minister has told the House that essential services, as he describes them, will not be cut. Will he identify in what areas economies are to be made? What does he regard as nonessential services? Having regard to the current rate of inflation and the rate of budget increase, it is obvious that cuts will have to be made.

I do not agree with what the Deputy has said. He is suggesting that inflation is at a higher rate than is the case. I have indicated that it is not a question of cutting services; it is a question of dealing with waste where it occurs. Deputies must be aware that there has been a consultant's report recently on the cost of drugs in the medical services. That report indicated that there were economies of the order of £10 million to be made. I am not saying that it is entirely true. That question is being investigated and considered but certainiy some economies can be made in that area. Economies can also be made with regard to fuel and in other areas.

Economies in fuel?

The Minister said nonessential services would be cut.

I have allowed numerous supplementaries on that question. I am calling Question No. 11.

Will the Minister please identify what areas he considers as nonessential services?

I did not say any services.