§ Mr. MichaelTo ask the Secretary of State for Wales what are the figures provided to him by each health authority in Wales in respect of(a) the authority's own estimate of the shortfall due to inflation in 1989–90 and (b) the figure by which each authority estimates it is underfunded for 1990–91.
§ Mr. GristMy right hon. Friend and I have seen copies of reports from the treasurers of district health authorities in Wales to their chairmen's committee concerning the financial position of Welsh DHAs generally in the current financial year and their projections for 1990–91. These reports give estimates of shortfalls in funding in both years on the basis of estimates of inflation and other financial pressures. However, they fail to take account of the resources to be released to supplement allocations through the attainment of targets for cost improvements and income generation. They therefore understate the resources available to authorities to meet the financial pressures which they face. So long as minimum cost improvement and income generation targets are achieved—which should be possible in any well-managed authority—allocations in both years should be more than sufficient to meet these financial pressures.