Deficit will be waived if Trust breaks even - McGimpsey

Health Minster, Michael McGimpsey said that a £3.3million debt inherited by the Western Health and Social Care Trust will not be recovered if they break even.

The former Sperrin Lakeland Trust which merged to form the new Western Trust incurred the deficit in April 2007.

Speaking during an Assembly debate in which he expressed concerns about the impact of the debt on jobs and key services in the West, the Minister said: “The Western Trust has moved quickly to deal with this problem. In the meantime my Department fortunately was able to manage the £3.3million deficit within the overall DHSSPS budget for 2006/07.

“This is not to say that I take this matter lightly – far from it. The normal policy of my Department is that any Trust deficits must be addressed and losses paid back to the Department. However, in this particular case I acknowledged the unusual circumstances in which the deficit occurred, as well as the challenges faced in establishing a major new organisation.

“Therefore in November 2007, I decided that if the Trust demonstrates sound financial management by breaking even in both 2007/08 and 2008/09, my Department shall not seek to recover the deficit.”

The Minister commended the Trust for achieving break even in 2007-08 and acknowledged their efforts in sustaining an encouraging financial performance.

He continued: “If, however, the Trust fails to break even in 2008-09, I remain determined that the £3.3million will still have to be recovered. This is only fair and this sum will then become available for reinvestment elsewhere in the Health and Social Care service (HSC) over the next few years.

“I would also like to remind members of the substantial investment in new health and care facilities in the Western Trust area. During the next three years there is capital investment of over £58million, rising to £570million over the next 10 years, committed for the Western Trust.

“I know all members will agree the importance of living within resources and I expect and require all health bodies to do so. I have created a strong incentive for the Western Trust to rapidly fix the problems they inherited. I will reach a final view based on their financial performance, before the summer of 2009. I commend them on their success to date, and I expect them to sustain it.”

Notes to Editors:

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