Mr. Alan WilliamsTo ask the Secretary of State for Wales if he will now answer the question asked by the right hon. Member for Swansea, WestOfficial Report, column 4, 7 December 1987 as to what action has been taken about the requirement that Welsh health authorities save 0.5 per cent. a year on spending on acute services in hospitals; and when.
§ Mr. GristHealth authorities in Wales are required to increase significantly the efficiency of all their activities, and not only those in the acute sector. Since 1983 there has been a specific requirement that the proceeds of the first 0.5 per cent. of cash releasing efficiency savings, as a proportion of recurrent revenue budgets, should be reinvested to develop services for elderly people, those with mental handicaps and those suffering from mental illness. £6 million is to be redeployed in 1987–88 as a result of this initiative.
From 1988–89 no minimum level of redeployment of efficiency savings will be stipulated by the Department. However, health authorities will be expected to continue to maintain a high standard of services for these patient groups and the Department will continue to monitor as part of the annual review process the extent to which health authorities have been able to continue a measure of redeployment of efficiency savings.