Health services that cannot show they are using existing staff and financial or other resources to maximum effect should not get any additional funding, Minister for Health Leo Varadkar is expected to say on Saturday.

In his speech to the annual conference of the Irish Medical Organisation in Kilkenny, he is likely to call for a new system for financing health services.

It is understood he will propose the introduction of a “zero-budgeting” exercise. “Rather than starting with a base, adding on for inflation, and then working out how much extra resource we need to do more, we should start with zero and work out how much we really need and what our priorities really are,” he is expected to say.

Basic principle

Mr Varadkar is also likely to say that now budgets are increasing again, there should be a basic principle that no additional resources will be provided to any service that cannot demonstrate that it is using its existing resources to maximum effect.

Mr Varadkar is expected to acknowledge that a lot of GPs are disgruntled after years of cutbacks and that it will not be easy to convince them all to sign up to the new contract providing free family doctor care to all children under the age of six.

He is also likely to warn that it would be a mistake to assume there will be a better deal on offer after the general election.

“It is not my role to dispense tactical advice, but I would ask you to bear in mind the fact that there are political forces new on the scene that openly oppose any restoration of public service pay this side of 2021,” he is expected to say. “There is a risk that they may be in a position to influence the next government or even be part of it.”