Inquiry call into ‘shambolic mismanagement’ of Health funds
21/02/2012
LHB Bailouts double but boards still predict deficits
Plaid Cymru has called for a major inquiry into spending by Wales’ LHBs after bailout payments more than doubled in only three financial years.
Research into official figures suggests that the Welsh Government is failing to control spending by some Local Health Boards. Annual financial bailouts for the 7 LHBs increased to £133m in 2011/12 - more than double the £62.5m bailout in 2009/10. Despite this, LHBs are still predicting a combined deficit of between £27m and £45m.
Plaid Cymru Leader Ieuan Wyn Jones AM said the figures suggest ‘shambolic mismanagement’ of public finances by the Labour Welsh Government at a time when budgets are going down.
Mr Jones also criticised Labour for pressing ahead with plans to restructure health services, saying that they should focus on sorting out the financial mismanagement highlighted by the figures.
Plaid Cymru Leader, Ieuan Wyn Jones AM said:
"The Welsh government is now in a position where its budget will continue to shrink over the coming years – money will be tight and services can only be maintained if Ministers maximise the value of every pound spent. Yet these figure show that the government is failing to control its spending. Bailouts have doubled in just three years, and it would appear nobody seems to be getting to grips with the situation.
There needs to be an urgent inquiry into what is going on.
"Labour’s decision to restructure health services around Wales is no more than a damaging distraction. The government needs to put proper financial controls in place to ensure that tax-payers’ money is spent effectively.
"Hywel Dda, Cardiff and the Vale and Aneurin Bevan LHBs have all had to receive significant cash bailouts over recent years, yet the mismanagement continues. It has emerged that Hywel Dda has already been allocated an additional £80m over 4 years. The government has failed to explain what this money is for, but we will continue to demand answers.
"The priority of this Welsh Government should be to sort financial mismanagement out rather than focussing on its damaging downgrading plans."