The Government is to provide at least €1 billion in additional funding for the public health services next year, Minister for Health Mary Harney has confirmed.
Most of the extra money will go on staff pay.
Ms Harney said it would take close to an extra €600 million alone next year to pay existing staff. There are now around 104,000 staff employed in the public health services.
Overall, the additional funds for 2007 will see the budget for the Health Service Executive (HSE) increase to around €14 billion. Details of the Government's spending plans for next year will be announced in the Book of Estimates to be published next week.
Ms Harney said: "The Estimates aren't out until the 16th of November but it's no secret to say they will be substantially bigger next year. It will take nearly €600 million alone extra money to pay the staff, the existing staff in the healthcare system and to introduce the new maternity leave so the health system is expensive, it's labour intensive, it consumes a quarter of all the money we spend running this country."
She made her comments when addressing an audience at Dublin's Beaumont Hospital.
She also told the Dáil that "it was no secret that the HSE will get at least an extra €1 billion to provide services around the country on a priority basis over the next year".
A general rule of thumb adopted by senior Department of Health officials in recent years is that the health services require increases of around €900 million each year just to stand still.
However, it is likely that there will be also be funding available to develop services and open new facilities in the year ahead.
Under the Government's health service reforms, it is mainly the HSE's responsibility to determine how its allocation will be divided up as part of its national service plan. This will have to be submitted to Ms Harney for approval before Christmas.
However, in the Department of Health's official letter of allocation to the HSE, the Minister is also expected to set out a number of areas which she considers as a priority for development in 2007.
It is expected, that in addition to monies announced in the Estimates, that there could be a further package of health sector funding announced as part of the Budget in December.
The additional money, which will be provided next year, is expected to allow for the implementation of the new national cancer strategy as well as to provide for further improvements in A&E services, and more services to keep older people in their own homes for longer, such as more home care packages and more nursing home beds.
There is also likely to be additional money for other services and facilities in the community including additional investment in general practice and community nursing so that patients do not have to remain unnecessarily in acute hospital beds.
Several hundred million is also likely to be allocated next year to fund applications for refunds for persons illegally charged for their stay in public nursing homes. This scheme got under way in recent weeks and is expected to cost around €1 billion eventually.
A rise of €1 billion in funding in the Estimates would be in line with the increase granted to the health services by the Government last year. In the 2006 spending plans, the Government provided for increases of over 9 per cent in funding to bring the health service budget up to €12.64 billion.