Health (Amendment)(No. 3) Act , 1996

1 Interpretation.

1.—(1) In this Act, except where the context otherwise requires—

“chief executive officer”, in relation to a health board, means the chief executive officer of the board and references to a chief executive officer shall be construed as including references to a person acting as deputy chief executive officer of the board;

“determination” shall be construed in accordance with section 5 and cognate words shall be construed accordingly;

“enactment” includes an instrument made under an enactment;

“executive function” shall be construed in accordance with section 4;

“expenditure”, in relation to a health board, means—

(a) the gross non-capital expenditure of the board for a financial year, and

(b) the gross capital expenditure of the board for that year;

“financial year” means a period of 12 months ending on the 31st day of December in any year and, in a case where the Minister makes a determination in respect of a period other than a financial year, shall be construed as a reference to such period;

“functional area”, in relation to a health board, means the functional area of the board as defined in the Health Boards Regulations, 1970 (S.I. No. 170 of 1970);

“functions” includes powers and duties;

“health board” means a health board established under section 4 (1) of the Principal Act;

“income”, in relation to a health board, means all of the income of the board for a financial year other than any grant made to the board for that year under section 32 of the Principal Act;

“indebtedness”, in relation to a health board, means the amount owed by the board to creditors, calculated in accordance with accounting standards specified by the Minister, less an amount equal to the value, so calculated, of the current assets of the board determined in such manner as may be so specified;

“local authority” means a local authority for the purposes of the Local Government Act, 1941;

“the Minister” means the Minister for Health;

“net expenditure”, in relation to a health board for a financial year, means the expenditure of the board for the year less the income of the board for that year;

“the Principal Act” means the Health Act, 1970;

“public authority” has the meaning assigned to it by section 2 (1) of the Local Government Act, 1991;

“reserved function” shall be construed in accordance with section 3;

“service plan” shall be construed in accordance with section 6.

(2) A reference to the performance of functions includes, with respect to powers and duties, a reference to the exercise of powers and the carrying out of duties.

(3) In this Act—

(a) a reference to a section or a Schedule is a reference to a section of or a Schedule to this Act unless it is indicated that reference to some other provision is intended,

(b) a reference to a subsection or a paragraph is a reference to a subsection or a paragraph of the provision in which the reference occurs, unless it is indicated that reference to some other provision is intended,

(c) a reference to any enactment, unless the context otherwise requires, is a reference to that enactment as amended, adapted or extended by or under any subsequent enactment, including this enactment.

2 Health board to have regard to certain matters in performing functions.

2.—(1) A health board, in performing the functions conferred on it by or under this Act or any other enactment, shall have regard to—

(a) the resources, wherever originating, that are available to the board for the purpose of such performance and the need to secure the most beneficial, effective and efficient use of such resources,

(b) the need for co-operation with voluntary bodies providing services, similar or ancillary to services which the health board may provide, to people residing in the functional area of the health board,

(c) the need for co-operation with, and the co-ordination of its activities with those of, other health boards, local authorities and public authorities, the performance of whose functions affect or may affect the health of the population of the functional area of the health board, and

(d) policies and objectives of the Government or any Minister of the Government in so far as they may affect or relate to the functions of the health board.

(2) The provisions of this section shall apply to both reserved functions and executive functions.

(3) Every enactment relating to a function of a health board shall be construed and have effect subject to the provisions of this section.

3 Reserved functions.

3.—(1) A health board shall perform the following functions:

(a) a function of a health board specified in a section mentioned in column (3) of the First Schedule, of the Act mentioned in column (2) of that Schedule opposite the mention aforesaid,

(b) a function (if any) as may be declared to be a reserved function by order made by the Minister, and

(c) a function which is specified as a reserved function in this Act.

(2) Every function of a health board that is required to be performed pursuant to subsection (1) shall be a reserved function and “reserved function” shall be construed and have effect accordingly.

(3) The chief executive officer shall assist a health board in the performance of its reserved functions, in such manner as the health board may require.

(4) The Minister shall not make an order under subsection (1) (b) in relation to any function or class of functions that is or are specifically conferred on a chief executive officer under this Act or any other enactment.

(5) The Minister may by order amend or revoke an order under this section.

(6) A health board shall not take any decision or give any direction in relation to any function of a health board that is not a reserved function.

4 Executive functions.

4.—(1) A function of a health board that is not a reserved function shall be a function of the chief executive officer unless otherwise provided for, whether in this Act or in any other enactment, and a function that is required to be so carried out shall be an executive function and “executive function” shall be construed and have effect accordingly.

(2) A chief executive officer shall furnish the health board with such information (including financial information) in relation to the performance of his or her executive functions as the board may from time to time require.

(3) A chief executive officer shall furnish the Minister with such information (including financial information) in relation to the performance of his or her executive functions as the Minister may from time to time require.

5 Determination by Minister of net expenditure limits for a health board.

5.—(1) Subject to subsection (2), the Minister shall, in respect of a financial year of a health board, determine the maximum amount of net expenditure that may be incurred by the board for that financial year and shall notify the board in writing of the amount so determined not more than 21 days after the publication by the Government of the Estimates for Supply Services for that financial year.

(2) (a) A determination to which this section relates may, if the Minister considers it appropriate that it should do so in any particular case, relate to such period (other than the financial year of the health board concerned) as may be specified in the relevant notification under this section.

(b) The Minister shall not specify under paragraph (a) a period beginning before the 1st day of January, 1997.

(3) The Minister may amend a determination under subsection (1) by varying the maximum amount of net expenditure that a health board may incur for a particular financial year and, if the Minister so varies that amount, he or she shall notify the health board concerned in writing of the extent of the amendment as soon as may be and the determination shall apply and have effect as so amended.

6 Adoption of a service plan by a health board.

6.—(1) Subject to section 7 (1) (a), a health board shall, within—

(a) 42 days, or

(b) such shorter period not being less than 21 days as the Minister may direct in any particular case,

of the receipt by the board of a determination, adopt and submit to the Minister a service plan.

(2) A service plan shall be prepared in such form and shall contain such information as may be specified by the Minister from time to time and, without prejudice to the generality of the foregoing, shall—

(a) include a statement of the services to be provided by the health board and estimates of the income and expenditure of the board for the period to which the plan relates, and

(b) be consistent with the financial limits determined by the Minister under section 5.

(3) If a service plan is not submitted by a health board in accordance with subsection (1), the Minister may direct the board to submit a service plan to him or her within such period not exceeding 10 days from the receipt of the direction as may be specified therein.

(4) Where a health board fails to submit a service plan to the Minister in accordance with the provisions of subsection (1), or pursuant to a direction under subsection (3), the Minister may direct the chief executive officer to prepare and submit a service plan to him or her within 10 days of the receipt of the direction and the chief executive officer shall comply with any such direction.

(5) A service plan submitted by the chief executive officer under subsection (4) shall be deemed to have been adopted and submitted by the relevant health board.

(6) Where in the opinion of the Minister the service plan of a health board—

(a) does not contain such information as was specified under subsection (2),

(b) proposes net expenditure which exceeds the net expenditure as determined by the Minister, or

(c) is not in accordance with the policies and objectives of the Minister or of the Government in so far as they relate to the functions of the board,

the Minister may, not later than 21 days after the receipt by him or her of the service plan, direct the health board or, in the case of a service plan submitted in accordance with subsection (4), the chief executive officer, to make modifications to the service plan and the board or the chief executive officer, as the case may be, shall comply with any such direction.

(7) Subject to subsection (5), the adoption of a service plan under this section shall be a reserved function.

7 Supervision and amendment of a service plan.

7.—(1) The Minister may, after the amendment by him or her of a determination under section 5 (3), either—

(a) direct that the service plan of the health board concerned shall stand amended in such manner as the Minister may specify in the direction, or

(b) direct the health board concerned to submit an amended service plan in accordance with the amended determination and the health board shall comply with such a direction.

(2) Where the Minister directs a health board to submit an amended service plan in accordance with subsection (1)(b), the provisions of section 6 shall apply to such plan with the necessary modifications.

(3) A health board shall supervise the implementation of its service plan in order to ensure that the net expenditure for the financial year concerned does not exceed the net expenditure determined by the Minister for that year.

(4) A health board may amend a service plan and, in so doing, it shall ensure that the net expenditure for the financial year concerned does not exceed the net expenditure determined by the Minister for that year.

(5) A copy of an amended service plan shall be furnished to the Minister by the health board as soon as may be and the provisions of section 6 shall apply to such plan with the necessary modifications.

(6) Subject to the provisions of this section and section 6, the supervision of the implementation of and the amendment of a service plan shall be reserved functions.

8 Amount of indebtedness of a health board.

8.—(1) Whenever the Minister makes a determination, he or she shall specify the amount of the indebtedness that the health board concerned may incur and shall notify the board in writing of that amount.

(2) A health board shall so conduct its affairs that its indebtedness does not exceed the amount for the time being specified by the Minister.

(3) The function of the health board set out in subsection (2) shall be a reserved function.

9 Functions of chief executive officer.

9.—(1) The chief executive officer shall implement the service plan, or amended service plan, on behalf of the health board so that—

(a) the amount of net expenditure of the board for the financial year does not exceed the amount of net expenditure determined by the Minister, and

(b) the indebtedness of the board does not exceed the amount specified by the Minister under section 8 (1).

(2) If the chief executive officer is of opinion that a decision of the health board will, or a proposed decision of the board would, if made—

(a) result in net expenditure by the board for a financial year in excess of the amount determined by the Minister, or

(b) result in the indebtedness of the board exceeding the amount specified by the Minister under section 8 (1),

he or she shall, as soon as may be, inform the Minister and the board of that opinion.

10 Expenditure by a health board.

10.—If the amount of net expenditure incurred by a health board in a financial year is either greater or less than the amount determined by the Minister for that year, the health board shall charge the amount of such excess or credit the amount of such surplus in its income and expenditure account for the next financial year.

11 Accounts of a health board.

11.—(1) A health board shall keep all proper and usual accounts of all moneys received or expended by the board including an income and expenditure account and balance sheet and, in particular, shall keep all such special accounts as the Minister may from time to time direct.

(2) A health board shall prepare annual financial statements in accordance with accounting standards specified by the Minister.

(3) The annual financial statements shall be adopted by the health board on or before the 1st day of April in the year following the financial year to which they relate.

(4) The Minister may by order (made after consultation with the Minister for Finance) vary the date specified in subsection (3).

(5) The adoption of annual financial statements shall be a reserved function.

12 Transfer of functions of a health board.

12.—(1) Where the Minister is satisfied, after considering a report prepared under subsection (5), that a health board is not performing any one or more of its functions in an effective manner or has failed to comply with any direction given by the Minister, the Minister may by order transfer such reserved functions of the board as the Minister may specify to—

(a) the chief executive officer, or

(b) such other person as the Minister may specify in the order,

for such period, not exceeding two years, as may be specified in the order.

(2) Where the Minister proposes to make an order under subsection (1), he or she shall give notice in writing of that proposal to the health board concerned and such notice shall indicate the terms of the order proposed to be made.

(3) A health board to which notice has been given under subsection (2) may, within a period of 14 days beginning on the date on which the notice is given to it, make representations in writing to the Minister as to why, in its opinion, the order should not be made and the Minister shall have regard to any such representations.

(4) (a) The Minister may by order amend or revoke an order made under subsection (1).

(b) An order made under this subsection shall not so amend an order under subsection (1) that the period for which a function stands transferred under that order exceeds two years.

(5) Before deciding whether or not to make an order under subsection (1), the Minister shall appoint a person to investigate the performance by the health board of its functions generally or of any specified function of the board during such period as the Minister may specify, and a person so appointed shall prepare and furnish to the Minister a report of the results and findings of the investigation.

(6) Where a function of a health board stands transferred under this section, the board shall not perform that function and the performance of that function shall not be subject to its direction, control or supervision.

(7) The chief executive officer or other person to whom a function stands transferred under subsection (1) shall keep the relevant health board informed in relation to the performance of that function.

(8) Notwithstanding section 16 (1) of the Principal Act, a chief executive officer shall not delegate a function standing transferred for the time being under this section save with the prior consent of the Minister.

13 Directions to a health board.

13.—(1) The Minister may give directions in writing to a health board for any purpose in relation to which directions are provided for by any of the provisions of this Act or any other enactment and for any matter or thing referred to in this Act as specified, to be specified, determined or to be determined.

(2) The Minister may, by a direction in writing, amend or revoke a direction under this section.

(3) A health board shall comply with a direction given to it under this section and shall furnish the Minister with such information as he or she may reasonably require for the purpose of satisfying himself or herself that any such direction has been complied with by the board.

14 Appointment and removal from office of chief executive officer.

14.—(1) Notwithstanding any other enactment, a person who is appointed to an office of chief executive officer after the commencement of this section shall, unless he or she earlier dies, resigns or is removed from office, hold the office during whichever of the following periods is the shorter and, on the expiration of that period, shall cease to hold the office, that is to say—

(a) a period of such length, not exceeding seven years, as the Minister prescribes by order, or

(b) the period from the date of the appointment to the date on which he or she attains such age as the Minister prescribes by order,