The Government will need to spend an additional €500 million on the health services next year just to meet the rising pay bill, the Tánaiste has said.
Ms Harney is expected to meet with the Minister for Finance, Mr Cowen, next week to determine the health budget for 2005. The Government currently spends nearly €11 billion per year on health. However, the Tánaiste has indicated that half a billion more will be required, even before making any provision for any investment in additional services for patients.
Ms Harney told The Irish Times that when the Government was spending more than €10 billion that services could not continue to lurch from crisis to crisis. The additional €500 million will be required to meet normal increases in pay and increments for the 100,000 staff in the health service.
The final increase in the health budget for 2005 will certainly be far higher than €500 million. Among the potential new investments likely to be sought by Ms Harney when she meets Mr Cowen are funding for a new package of services for the disabled - likely to be announced on Budget day - and provision for raising the threshold for eligibility for medical cards.
The Minister has already indicated publicly that the current income limits to qualify for a medical card are too low. The Irish Times revealed earlier this month that there are now 100,000 fewer people with medical cards than in 1997.
Ms Harney said that there would be no more money this year for accident and emergency services. She said that "everything did not require money".