BBC News | SCOTLAND | Fund move in health row

The Scottish Executive is trying to defuse the underspend row by stressing that health will have first call on a new contingency fund set up by ministers.

The �34m taken from the health budget - because it was not spent during the last financial year - has been diverted into the fund, which was established to help tackle unscheduled financial demands.

Acting First Minister Jim Wallace has indicated that health would be top of the priority list when money was needed from the fund.

In a further attempt to take the heat out of the controversy, Health Minister Susan Deacon acknowledged there was competition for resources but stressed that health remained vitally important for the executive.

'Committed to the NHS'

She said: "The people of Scotland should be in no doubt this executive is committed to health spending and the NHS.

"That is reflected in our spending priorities and it is reflected in our policies. That is the way it will continue to be."

The Cabinet, which will review the situation at its weekly meeting on Tuesday, has continued to insist that the issue has been misunderstood but ministers recognise that they need to offer reassurances.

They insist that some of the �34m would have ended up being spent on initiatives tackling drug abuse and homelessness, both factors in ill health.

'Split' reports

Mr Wallace said: "We are investing money into providing good housing, we are investing money into the rough sleepers initiative and we are investing money to tackle drug rehabilitation.

"These all have a clear health dimension."

At the weekend it was reported that the Cabinet was split over plans to claw back the money from health and put it into other areas, including forestry and building conservation.

Ms Deacon was said to be pushing for the cash to be returned to the NHS but Finance Minister Jack McConnell, who made the decision to re-allocate it, was reported to be standing by the move.

Andrew Wilson: "People feel let down"
Opposition parties have seized on the apparent Cabinet confusion and are also keen to see the money returned to health.

In the Scottish Parliament on Monday Tory leader David McLetchie tabled15 written questions on the matter in an "attempt to get to the bottom of the underspend saga".

The Scottish National Party's treasury spokesman, Andrew Wilson, said the matter was not about "other parties having a field day" but the fact the people of Scotland felt "extremely let down by a government which has promised so much but failed to deliver".

He added: "This issue has been used as an internal political football by a cabinet at war with itself.

"It is money which could have bought 400 doctors and 800 nurses - just think of the value that that could have made to lives across Scotland."

'Lack of leadership'

The Tories' health spokeswoman, Annabel Goldie, said the funding row represented just the latest in a series of presentational blunders by the Scottish Executive.

She added: "We are beginning to see a lack of leadership and division within the Scottish Executive.

"Any underspend should have been rolled over, that is the sensible thing to do.

Malcolm Chisholm: "Progress has been made"
"If the executive is serious about health then it should put its money where its mouth is."

Labour backbench MSP Malcolm Chisholm said it was now important to put the issue in perspective.

He admitted: "This was a presentational disaster, quiet clearly. But in actual fact there has been great progress in the health service in Scotland.

"Underspends used to go back to the Treasury, now we are able to keep them in Scotland.

"The important thing now is that the �34m is spent on health.

"Health has been redefined in a broader way by the executive and by the Labour administration in the Scottish Office before that and we know that ill health is caused by many social factors.

"So as long as that money is spent in the broad sense on health then I am sure everyone will be happy."


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