My views on the second supplementary budget

I support of the second supplementary budget

Unfortunately the budget follows the substantial public expenditure cuts of the Conservative and Liberal Democrat coalition in Westminster and the affect that has had upon Wales and public services in Wales

Firstly I would like to correct the Conservatives on Health expenditure

2003-04	4,170,585	10,914,434	38%
2013-14	6,541,454	16,167,748	40%

 

An increase of over 56%

And an increase of 2% in the total Welsh budget spent on health

At the current rate of increase Health will soon be over half the total expenditure by the Welsh Government

£150 million was announced by the Minister for Finance in October to meet new demands arising from the Francis Review. £142.6 Million is to be funded from reserves and 37.4 Million from Invest to save.

As someone who strongly believes in invest to save I will be looking to see how this invest to save money has generated savings in future years.

£50 Million is being held in a contingency fund in case some Local health boards are unable to achieve a breakeven figure at the end of the year.

The Welsh Government have indicated to the Public accounts Committee that the January estimated end of year deficit position of Local health boards was just under £77 Million.

Historically the January estimated overspend has come down by the end of the financial year.

Health board budget positions have become depressingly familiar.

Substantial overspend in the first quarter

Stability in the second quarter

Some improvement in Quarter 3

Substantial savings in quarter 4

Of course when we talk about Health board overspends it is really short hand for Hospital overspends

 

Questions I hope the Finance Minister will ask the Minister for Health

·     If each hospital carried out each procedure at the cost of the cheapest how much would be saved?

·     Which areas of each trust are causing the over spends?

·     If the situation reported to the public accounts committee in Betsi Cadwalladr trust of the board agreeing a budget but departments considering those budgets indicative and refusing to accept them exists in any of the other trusts?

·     How the cost of medicines that go out of date and have to be destroyed varies between the best and the worst performing trusts, hospitals and wards?

Leaving Health

I warmly welcome the allocation in the supplementary budget of £79.3 Million to the Wales Infrastructure Fund.  With £32.5 Million allocated for SME investment fund and £34.5 Million allocated to help to buy Cymru.

An example of allocating finance to meet the priorities of Labour and the people of Wales.

Finally I congratulate the Finance Minister on the supplementary budget.