asked the Minister for Health if he is aware of the serious concern being expressed by staff and parents of St. Michael's House due to a very acute shortfall in revenue particularly arising out of a reduction in the budget by £342,000; if he has been informed that because of this shortfall some units will close, staff redundancies will occur, the staff/child ratio will become more unfavourable and the staff morale at St. Michael's House is presently very low; if he has any proposals for additional supplementary funding for this organisativel tion in view of its vital importance in the provision of care and education for mentally handicapped children; if he has any proposals to provide additional capital funding to take account of the immediate need for placement of at least 50 people in residential care; and if he will make a statement on the matter.

I am aware of the concern expressed by various non-statutory organisations with the level of funding provided in 1986 in respect of mental handicap services. Where budgeting problems are envisaged the situation is being assessed and in this connection I have arranged for my Department to hold discussions next week with representatives of St. Michael's House regarding the general financing of the association's services. The various matters raised by the Deputy will be considered in the course of these discussions and I will continue to treat the situation as sympathetically as possible in the light of the available resources.

I am sure the Deputy will be pleased to know, however, that despite the heavy demand on funds generally in the health services, I have made provision this year for the opening of the Belcamp unit for day care by St. Michael's House. The question of providing additional capital funding for residential care is being kept under continuous review, having regard to the present level of resources.

Having regard to the fact that the Minister is taking into account the opening of the Belcamp unit, would he accept that it is not possible for this organisation, St. John of God or other non-statutory organisations to manage on an annual cut of 7 per cent? That is what is involved in this case.

There is no cut of 7 per cent in relation to——

I have the figures in front of me for 1985-86. When one takes into account the salary increases the best accountants available will show a cut of 7 per cent. I will quote the figures for the Minister if he wishes.

The Deputy may have figures but I have the actual departmental allocations in front of me. Having met members of St. Michael's House, I know their position. The original allocation for St. Michael's House last year was £3.895 million. There was a revised allocation during the year bringing it up to £4.06 million. The first allocation for 1986 is £4 million. There is a meeting arranged with St. Michael's House for Thursday, 26 June to discuss the implications of their budget for 1986. I think it will be a useful meeting. I am quite certain we will be well able to deliver the ongoing services of St. Michael's House during 1986.