SEVERAL AGENCIES in the health sector are expected to be merged or abolished in the weeks ahead as part of the Government's drive to cut costs, it has emerged.
Well-placed sources say the Irish Medicines Board (IMB) and the Food Safety Authority of Ireland (FSAI) are likely to be merged and the announcement may be made as early as today in the context of this year's Budget.
The IMB's function has been to protect and enhance public and animal health through the regulation of medicines, medical devices and healthcare products, while the FSAI's mandate has been to protect consumers' health and consumers' interests by ensuring that food consumed, distributed, marketed or produced in the State meets the highest standards of food safety and hygiene.
It was already known that the Government was looking at the rationalisation of State agencies in general, but sources were indicating last night that the extent of the cull in the health sector would be surprising. Sources were maintaining that up to half of all the so-called "quangos" in the health sector could be merged or abolished.
In addition, it is expected that the National Consumer Agency, established only in May 2007, will be abolished and its functions absorbed by the Department of Enterprise, Trade and Employment, which set it up.
Last month the Minister of State at the Department of Finance Dr Martin Mansergh told the association of chief executives of State agencies at their annual conference that no State agency should regard itself as "immortal".
He said annual expenditure by State agencies in all sectors here had risen from €3.7 billion in 2003 to €6.1 billion in 2008 and there was a need for rationalisation, greater transparency and accountability and greater value for money.
"The Government recognises the important role that our State agencies play in the delivery of services and information to citizens . . . however, in some cases, the large number and diverse range of agencies and bodies can make it difficult for citizens to know how to access information and services," he said.
"Agency rationalisation is a complex matter and the savings made may not be fully realised within the short term. However, the outcome of the process must deliver a more citizen-friendly system of government with better, more focused delivery of services, and the emergence of more efficient, effective agencies and bodies alongside major savings in administrative overheads including staff numbers," he added.
Meanwhile, the Government has also been considering the abolition of the automatic entitlement to a medical card for all those over 70 years of age as part of today's Budget, with new entrants to the scheme likely to be subject to a means test.
There are also suggestions that there will be significant changes in eligibility for the refund of drugs scheme and other demand-led schemes, as well as a redundancy programme for HSE staff.
Meanwhile, the HSE is expected to receive the same level of funding for next year as it did this year and it estimates that, due to inflation and other factors, this could leave it facing a shortfall of up to €700 million next year if it is to maintain existing levels of services in 2009.
Health Minister Mary Harney said last week that she hoped there would be sufficient money to maintain services next year at this year's levels.