§ Mr. Ovendenasked the Secretary of State for Social Services what action he intends to take to prevent deliberate overspending by area health authorities whose revenue allocation has been reduced as a result of the implementation of the Resource Allocation Working Party's report.
§ Mr. MoyleUnder the cash limit allocation system regional health authorities make cash limited allocations to area health authorities. Every health authority is required to keep its outgoings in the year within its approved cash limit. An area health authority may, however, with the agreement of the regional health authority, incur an overspending but the regional health authority is then required to recover it through a corresponding reduction of the area's cash limit for the ensuing year.