asked the Minister for Health the additional costs that will arise in 1981 for health boards and voluntary hospitals as a result of the value-added tax and other taxes imposed by the Government in the July Budget.

2.

asked the Minister for Health how and to what extent she proposes to compensate health boards and voluntary hospitals for the additional costs arising from the Government's budget in July.

With the permission of the Ceann Comhairle, I propose to take Questions Nos. 1 and 2 together.

The additional costs in 1981 arising for health boards and voluntary hospitals as a result of the July budget increase in value-added tax and in other taxes is estimated at £2.8 million. The question of how this and other additional expenditures of health agencies in 1981 are to be provided for is at present being examined.

Did I hear the Minister say the figure was £2.8 million?

Yes.

Even from a limited survey of health boards my understanding is that the figure would be considerably in excess of this. Is the Minister taking into account the full impact of the costs or only a limited impact? My figure is of the order of £12 million to £15 million.

The figure supplied to me is £2.8 million and that is the figure on which I am working. I assume it takes into account the full impact of the cost.

What areas are covered by this £2.8 million?

The main tax impositions which will affect health boards and voluntary hospitals are the 10 per cent value-added tax which was increased to 15 per cent from 1 September 1981, excise duty increases from 21 July 1981 on petrol and the purchase of cars and motor cycles, the reintroduction of road tax on cars not exceeding 16 hp from 1 September 1981, the stamp duty on cheques increased from 3p to 5p, Post Office charges were raised by 20 per cent and telephone and telex connection fees were increased by £20 from 1 September 1981.

I am surprised at this figure of £2.8 million because the officials of one health board — and I had broadly similar figures from other health boards — indicate the total will be around £12 million. For instance one board gave me a figure of £9 million and if we take the voluntary hospitals into account we will get the figure I mentioned. I note increased ESB charges are not included in the Minister's list and I take it that the increases applied by the Minister for Industry, Commerce and Tourism have not been taken into account.

This is not a complete list. I gave the main items. I am certain all the items concerned are included in the figure of £2.8 million.

In view of the extra costs involved will the Minister ensure that the health boards and voluntary hospitals are compensated? Has she met the chief executive officers and chairmen of the boards, or does she intend to meet them to work out how they will meet these increases?

I hope the health boards can be compensated. As I explained in my reply, the matter is being examined. I plan to meet the chief executive officers within the next few weeks.

Can I take it from what the Minister said——

I am sorry, Deputy, but we have exhausted these questions.

Is it the Minister's intention to compensate the health boards?

I have that matter under consideration.

3.