Extra spending on the health service is set to be the centre point of the Government's spending plans for next year, to be announced today. Martin Wall and Una McCaffrey report.
The Department of Health will receive around €1 billion extra in funding, an increase of about 9 per cent, meaning that around one-quarter of all Government spending next year will go on this area.
The health package will be part of a new Government focus on addressing social issues, which is also expected to involve a reversal of cutbacks in the rent supplement scheme announced last year.
The Estimates will pave the way for a relatively generous Budget package, after which the increase in current spending for next year will be set at around 8 per cent.
The Tánaiste and Minister for Health will today announce a significant increase in the number of medical cards, and new measures to provide free GP services and medication for certain categories of children. A package to deal with disability is also expected.
There will be major investment in tackling problems in hospital accident and emergency units, with more money to buy step-down facilities in private nursing homes.
However, informed sources said there would likely be increases in the cost of private beds in public hospitals - a move which would drive up the cost of private health insurance. There may also be a further increase in the cost of attending A&E services. There will also be more money for the National Treatment Purchase Fund.
Meanwhile, the Minister for Social and Family Affairs, Mr Brennan, is expected to signal that he will row back on the controversial cutbacks introduced last year which restricted the payment of rent supplements to people who had been renting in the private sector for six months.
The Government is also expected to announce an extra €28 million to subsidise more "in-company" training courses for staff working in vulnerable sectors of the economy.
While the full picture on capital spending is not expected until Budget day, the Minister for Transport, Mr Cullen, will announce provisions for the development of a new rail station in Dublin's docklands area, at a cost of €60 million over three years. This will allow for a major increase in services on the Maynooth and Sligo line.
Despite extra spending in some areas, the Minister for Finance, Mr Cowen, will emphasise that the overall budgetary approach remains prudent. He confirmed yesterday that the the Estimates had been formed in line with the principles of the Sustaining Progress wage agreement.
This would allow current expenditure to grow by about 8 per cent next year. The increase announced today will be somewhat lower, allowing scope for social welfare increases on Budget day.