Budgetary pressures in the wake of the VAT share crisis were the focus of a DHSS conference today (Tuesday 10th November).
As a result of the recent decision by the UK Government to renegotiate the VAT Sharing Agreement together with the reduction in the rate of the tax to 15%, Government revenue will be substantially reduced in the coming years.
A spokesperson for the Department comments, "The DHSS must respond to these external pressures as they will not go away.
"Whilst it has been made clear that Health and Social Care will remain government priorities, the scale of the reductions and the size of the Department means that the DHSS will inevitably be affected and cuts in services may have to be made.
"All services are currently being reviewed and nothing can be excluded. However, we are at an early stage in our deliberations and contrary to some rumours which are circulating, no decisions have yet been taken.
"It is important that all proposals to cut expenditure are carefully considered and that the implications are fully assessed.
"We would not wish to act without being fully aware of the implications and having consulted with our staff bodies.
"The Department is currently briefing its staff and seeking their suggestions for cost savings and has had helpful discussions with trade union representatives.
"We appreciate that there will be concern, but once an overall Plan has been prepared and approved by the Department and the way forward is clearer a further announcement will be made".
Attendees at the conference included DHSS Minister Eddie Teare MHK, Chief Operating Officer Lesley Keenan, and Director of Finance Simon Jackson.
