Health criticised for second big overspend

Thursday 6th September 2007, 12:00AM BST.

HEALTH minister Peter Roffey has denied deliberately overspending to make a political point. The denial came as he revealed that his department could be breaking its budget by £600,000 this year.

Like last year’s £675,000 overspend, he put it down to the ‘almost uncontrollable’ cost of off-island placements.

Treasury has warned Health about its spending.

Rejecting any allegation of point scoring, Deputy Roffey said: ‘I refute that completely. I don’t think any department has done more to try to bite down on spending.

‘Few others are faced with such graphic consequences if spending is cut too far.’

And he did not see it as a resignation issue.

‘I don’t believe there’s another set of politicians who could do a better job at restraining expenditure than we have.’

Deputy Roffey has previously threatened to resign if the department had to make a decision he could not live with morally.

But he does not intend to step aside as Health minister until the end of this term.

‘It seems like an empty gesture for me to consider stepping down two or three months before that. I think that would leave my department in more of a mess in what’s a difficult time for it.’

Deputy Roffey said the predicted overspend needed to be seen in the context of the huge effort to live within budget.

‘In the same way Education had to face up to higher tuition fees in the UK universities, we’ve had to face up to hugely increased charges for off-island treatments.

‘We’re minnows in that market, but we’re negotiating as hard as we can.’

This could be the second year that it has underspent on local services, he added.

Deputy Roffey said that there was a limit to how far off-island cover could be rationalised.

Treasury minister Deputy Trott has pointed out that over four years 2003-6 inclusive Health’s budget increased by more than 7.5% in real terms.

Deputy Roffey said that figure simply matched the annual increases in the UK in health spending.

The department is now hoping to ease the situation by raising more money from the UK from the reciprocal health agreement between the island and the NHS.

The department believes it is being underpaid for what it provides for the UK under the agreement. It has bid for more, which would cut the overspend by £400,000.

‘We will be trying to take measures, perhaps not all of them popular, to minimise other costs by the end of the year.’


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