Health Authorities (Finance) (Hansard, 18 January 1978)

§ Mr. Millan

This report was circulated to health boards and other interested bodies for comment in two parts: first, on the general principles of the report and the action to be taken in the light of the report on the allocations for the financial year 1978–79; and second, on action on the longer term proposals in the report. Having considered the comments I have received so far on the report I have decided that it would be right to accept it in general principle and to make a limited move towards redistribution in 1978–79.

Accordingly, target allocations for 1978–79 will be determined on a basis designed to achieve one-tenth of full redistribution in that year. This will mean that every board receives some increase in its allocation next year. Further, I shall introduce a system whereby boards which cannot use all their increase of allocation under 251W the SHARE proposals next year will be able to "bank" money with my Department, which will use it to help those boards which have particular need for heavy expenditure in that year—e.g., because the revenue costs of commissioning a new unit have to be met well before the offsetting savings from associated closures can be realised. Boards which borrow and boards which lend will have compensating adjustments made to their future SHARE allocation in due course.

As the SHARE report makes clear, a considerable amount of work still requires to be done in refining the figures, and I will further review this matter when have received the comments on the longer term aspects which have been asked for by the end of March. However, it seems clear that further refinement of the figures cannot radically affect the indicated targets for 1978–79 in view of the limited move towards redistribution to be made in that year.