The Taoiseach undoubtedly is aware of the grave concerns regarding the leaked report prepared by Professor John Higgins on the proposed hospital network reconfiguration in the south east. This is an area populated by more than half a million people. I understand the long-awaited report by Professor Higgins on the hospital groupings is before the Cabinet and I am almost certain the Taoiseach is aware of it at this point. I have heard that two distinct options are under consideration at present. There is a proposal that the south-eastern hospitals stand alone as separate groups or that Waterford and Clonmel should be grouped with Cork, while Kilkenny and Wexford should be grouped with Dublin. In this instance, I understand that Waterford Regional Hospital would become and acquire the status of a specialist teaching hospital. Can the Taoiseach confirm whether he has seen the report and, if so, can he give his views thereon? The Minister for Health previously gave a commitment to me and other Oireachtas Members in the south east that were Waterford to be grouped with Cork, which is reliably rumoured to be the case, absolutely no service would be lost at Waterford Regional Hospital. Will the Taoiseach also give a commitment in this regard? In addition, will the Taoiseach confirm that no jobs will be lost as a result of this regrouping?

The Taoiseach will be aware that more than 15,000 people took to the streets in Waterford last year and still have no answers. Thousands of people, many of whom are ill and traumatised, urgently require the Government to give a commitment that essential services such as oncology, orthopaedics, cardiovascular surgery, accident and emergency services and so on will be protected within the new hospital groupings. The time has come where people can wait no longer. The Government should be upfront and honest and should tell people what is happening in respect of the reconfiguration of the hospitals and the network. As I stated, all Deputies, Senators and councillors in the south east have been briefed as to what will be the likely outcome. Almost all of them are united on what should happen and many of them are under fierce pressure. In fairness, this applies in particular to Deputies, Senators and councillors from Fine Gael and the Labour Party, who worry about what might happen under this reconfiguration. People want the Taoiseach and the Minister for Health to give a commitment this morning that no matter what happens in the new configuration, all the essential services will be protected, particularly in respect of Waterford Regional Hospital.

I thank Deputy Halligan for raising this matter. Everyone is aware that in June 2012, the Minister for Health appointed Professor John Higgins to conduct and share a strategic board on the establishment of hospital groups. The strategic board has representatives of national and international experience. More than 100 meetings took place around the country and it is clear that a great deal of politics of many sorts was involved in the discussions and arising from the potential consequences.

Big Phil was not going to wait for that.

Deputy Halligan should note the Minister expects to bring his recommendations to the Cabinet the week after next, that is, I expect it to come before the Cabinet in two weeks' time.

In regard to Waterford, which obviously is a strategic location and which, as the Deputy noted, serves half a million people in the south east, there is a full commitment to the retention of Waterford as one of the eight existing national cancer services with all the associated services in the hospital. This already has been confirmed in the national cancer care programme, NCCP. Consequently, Waterford Regional Hospital will continue to be a NCCP centre. It will retain the same population referral base for cancer patients it currently has. Joint consultant appointments across the groups, such as general surgery, which is shared with Wexford, will continue to support the specialist cancer services it provides. Trauma services will continue to remain at Waterford Regional Hospital and the hospital will retain its current suite of services, including invasive cardiology, as well as trauma and oncology services.

This is all part of a programme of change being directed by the Minister for Health to establish hospital groups and then hospital trusts, so a far more efficient service will be provided for people throughout all regions of the country. Waterford is an important location and will continue to be one of the eight centres. It will continue to retain its current suite of services, including invasive cardiology, trauma and oncology services, and the same patient referral basis it currently has.

I thank the Taoiseach for his direct answers to my questions. There is also some concern about budget allocation. Cork University Hospital had a deficit of €2 million last year, while Waterford Regional Hospital had a deficit of €6,120. The front-line staff in Waterford Regional Hospital can tell horror stories of having to keep within budget and out of deficit. It is very important that we be given an assurance that any proposal brought forward relating to the future of hospitals will include comprehensive details as to how the budgets in each of the hospitals will be allocated within the overall grouping. It is important for everybody that there is accountability. If hospitals are doing their job within the specific budgets allocated to them, they should be treated accordingly. If one hospital has a deficit of €2 million while another hospital has stayed within its budget, it is not right that the hospital that stayed within budget should be hindered in any way in the future allocation of finances. In fact, the finances for these hospitals should be increased.

The issue Deputy Halligan mentions in respect of budgets is also associated with the requirement of the Government to achieve €300 million in extra savings from within the payroll this year. There are significant finances involved in the health sector and in hospitals. The point the Deputy made is obviously one for discussion for each group when the groups are set up. Clearly, one will not have a situation where one sets up a group and deprives or denies access to funding to provide services to a hospital within the group. The groupings will make it easier for hospitals to recruit medical personnel and will give them far greater autonomy in the way they do their business in terms of the services they deem to be a priority and which they wish to promote or retain, as the case may be. In Waterford, for example, there has been a significant capital investment in the provision of a new neonatal unit. It has been completed and is currently being fitted out for use. That is all part of the discussion that will take place about the overall budget and how it is divided between the hospitals, be they major, local or county, within the groupings when they are established.