Announcing the publication of the cross-party report on Fair Shares for All - The National Review of Resource Allocation for the NHS in Scotland (The Arbuthnott Report), convener Margaret Smith said:

"We welcome Arbuthnott’s attempts to address the imbalance in resource allocation in the NHS. And we acknowledge its efforts to take into account issues relating to remoteness, deprivation and gender when doing so.

"But while the committee recognises this substantial progress towards tackling inequality we have highlighted the need for further work to be done before the new formulae can be implemented with confidence.

"Our report details serious limitations with Arbuthnott’s methodology and the formulae and data used to slice up the NHS cake in Scotland. Our particular concerns include:

• that the actual overall re-distribution of funds proposed by the report represents less than 2 per cent of the entire NHS budget and does not reflect adequately the real differences in health service needs
• the use of data on GP and community care services which does not adequately include Scotland’s most deprived areas
• a lack of flexibility which fails to take account of the distinctive needs of many of our island communities
• that the use of only one year’s data may contribute to inconsistencies in the way in which outwardly similar areas, such as the Borders and Dumfries & Galloway, are treated differently.

"Our recommendations include:

• in view of the ongoing work that still needs to be done, that the implementation of the Arbuthnott Report be postponed until further information and research is available
• that a progress report with a clear timetable for dealing with the inherent problems highlighted by the committee be issued to the Parliament by September 2000
• that the Executive establish a standing group to monitor and review the allocation formula to develop a fairer distribution over time, in a clear and open fashion.

"The committee does recognise the need to develop a simpler and fairer way to allocate NHS resources. The system should be based on clear aims and straightforward methods that will give the people of Scotland improved and fairer shares of their health service.

"But at the same time, we are determined that practical steps to reduce health inequalities and improve resource allocation, outwith the remit of this inquiry, should not be delayed."

BACKGROUND NOTES

The committee’s report is available on the Parliament’s website or can be purchased from outlets of The Stationery Office.

Members of the media wishing to speak to committee convener Margaret Smith about the report’s findings can contact her on Friday morning by phone on 0131 348 5786.

The committee’s membership is as follows:

Malcolm Chisholm, Dorothy-Grace Elder, Duncan Hamilton, Hugh Henry, Margaret Jamieson, Irene Oldfather, Mary Scanlon, Richard Simpson, Margaret Smith (Convener), Kay Ullrich, Ben Wallace.

Andrew Slorance: 0131 348 5389
email: andrew.slorance@scottish.parliament.uk