The Estimates for the Department of Health appear to give little scope for improving hospital services next year, even though Department spending is to increase by 10 per cent.
Last night the Labour Party spokesman for health, Mr Derek McDowell, said it appeared service levels would remain at 1997 levels even though the "Exchequer was awash with money".
"It is appalling that people dependent on the health services would be treated in this fashion. And the truth is that we will not know for several weeks, until the Department of Health notifies the health boards of their annual allocations, what the exact implications are," said Mr McDowell.
However, he said, the early indications were that the Minister had failed completely to persuade the Minister for Finance to make adequate provision for the health services. Spending on health board and voluntary hospitals looks set to increase between 6 and 8 per cent. The previous minister for health, Mr Michael Noonan, maintained that an increase of at least 8 per cent was necessary simply to maintain services at existing levels, given that medical inflation runs much higher than the overall inflation figure.
Overall spending in the Department of Health is to increase by 10 per cent. A large percentage of the increase will go towards payment of compensation to people infected with hepatitis C and the building of a new headquarters for the Blood Transfusion Service Board.
The budget for the Department is £2.7 billion, a net increase of £259 million. The increase for non-capital expenditure is 10 per cent on the amount spent this year, and a 14 per cent increase for capital expenditure.
According to a spokesman for the Department of Health, the Minister, Mr Cowen, is still negotiating with the Department of Finance for further spending increases, which may be announced on Budget day.
He said that when negotiating the Estimates Mr Cowen attempted to pursue a strategy whereby the non-capital provision would be consistent with the maintenance of service levels, while the capital programme would take account of the serious under-investment which has occurred in the past.
He said the management of resources throughout 1998 would be rigorous and require tight management because of the limited scope for supplementary budgets.
The Department has allocated £85 million for hepatitis C compensation payments compared to £27 million last year, and over £6 million for the medical treatment of people with the virus. A sum of £15 million has been allocated for the hepatitis C reparation fund to pay aggravated damages to those infected.
The £25 million purpose-built headquarters for the BTSB, to be built on the site of St James's Hospital, is included in the £129 million allocated towards capital services. The Department is to spend £14 million, double last year's figure, on updating information systems for 2000.