Green v South Eastern Health Board

JurisdictionIreland
JudgeMr. Justice Barron
Judgment Date11 December 1987
Neutral Citation1988 WJSC-HC 1202
Docket NumberNumber 147 of 1987
CourtHigh Court
Date11 December 1987
GREEN v. SOUTH EASTERN HEALTH BOARD
Judicial Review
NOEL GREEN
.V.
THE SOUTH EASTERN HEALTH BOARD

1988 WJSC-HC 1202

Number 147 of 1987

Synopsis:

NATURAL JUSTICE

Fair procedures

Hospital - Closure - Subvention - Discontinuance - Exercise of statutory power - Power exercised without consultation with members of local community - Local health board not obliged to consult with local community before exercising statutory power - ~See~ Social Services, health - (1987/147 JR - Barron J. - 11/12/87)

|Green v. South Eastern Health Board|

SOCIAL SERVICES

Health

Hospital - Maintenance - Discontinuance - Health Board - Authority - Consent of Minister of State - Closure of hospital challenged - ~Locus standi~ of local inhabitant - By letter dated 2/4/87 the Minister for Health informed the respondent health board of the maximum expenditure by the respondents which he had approved in respect of the current financial year - The sum so approved constituted a substantial reduction as compared with the total expenditures approved for former years - The chief executive officer of the respondents prepared a memorandum specifying the expenditure limits which should be applied to the respondents” various functions in the current financial year in order to comply with the Minister's requirements - On 30/4/87 the respondents rejected the contents of the memorandum - Section 31, sub-s. 1, of the Act of 1970 states:- "A health board shall not, save with the Minister's consent , incur expenditure for any service or purpose within any period in excess of such sum as may be specified by the Minister in respect of that period" - If the chief executive officer of a health board is of opinion that a decision or proposed decision of the board would incur expenditure by the board in contravention of s. 31, he is obliged by sub-s. 2(b) of that section to inform the health board and the Minister of that opinion - On 1/5/87 the chief executive officer informed the respondents and the Minister that the respondents would incur expenditure in excess of that approved by the Minister - On 7/5/87 the respondents passed a resolution adopting the various limits of expenditure specified in the memorandum - One of the reductions specified in the memorandum was the discontinuance of the annual subvention granted to St. Vincent's District Hospital, Tipperary - That discontinuance would lead inevitably to the closure of the hospital - After the date of the resolution, the Minister gave his consent to such discontinuance - The applicant live in the neighbourhood of that hospital - The applicant applied for an order of certiorari quashing the resolution by which the respondents adopted the expenditure limits specified in the memorandum - Section 38, sub-s. 1, of the Act of 1970 states that a health board may, with the consent of the Minister, provide and maintain any hospital required for the provision of services under the Health Acts, 1947–1970 - Section 38, sub-s. 3, of the Act states:- "A health board may and, if directed by the Minister, shall discontinue the provision and maintenance of any premises provided by it under subsection 1" - Section 38, sub-s. 4, of the Act provides that a health board shall not exercise its powers under sub-s. 3 in relation to the discontinuance of the provision and maintenance of a hospital save with the consent of the Minister - Section 38, sub-s. 5, states that the Minister shall not give a direction under sub-s. 3 in relation to the discontinuance of the provision and maintenance of a hospital save after having caused a local enquiry to be held into the desirability of the discontinuance - Held, in dismissing the application, that the applicant, as a member of the local community, had ~locus standi~ to invoke the supervisory jurisdiction of the court to ensure that the respondents” statutory power had been exercised bona fide for the purpose for which the power had been granted - Held that the respondents had exercised their power under s. 38, sub-s. 3, of the Act of 1970 in a bona fide manner and for the purpose for which the power had been conferred - Held that the obligation to hold an enquiry, imposed by sub-s. 5, did not apply to a discontinuance effected pursuant to sub-s.3 of s.38 but not directed by the Minister - Held that the respondents were not obliged, by the requirements of fair procedures or otherwise, to consult with the local community before exercising their power under sub-s.3 of section 38 - Held that the respondents” resolution had been validated by the subsequent consent of the Minister - Held that an objection that the respondents” resolution had been passed at a meeting of which due notice had not been given could be made only by a member of the respondent health board - Health Act, 1970, ss. 31, 38 - (1987/147 JR - Barron J. - 11/12/87)

|Green v. South Eastern Health Board|

PRACTICE

Parties

~Locus standi~ - Hospital - Closure - Authority of health board - Authority challenged by local inhabitant - Maintenance of hospital discontinued by respondent Health Board in exercise of statutory power - Applicant for judicial review of resolution passed by respondent - Proceedings properly instituted - ~See~ Social Services, health - (1987/147 JR - Barron J. - 11/12/87)

|Green v. South Eastern Health Board|

Citations:

HEALTH ACT 1970 S31

HEALTH ACT 1970 S38

HEALTH ACT 1970 S38(5)

HEALTH ACT 1970 S38(3)

PMPS V AG 1983 IR 339

MCMAHON & ORS V IRELAND & ORS 1988 ILRM 610

IRISH COMMERCIAL SOCIETY V PLUNKETT & ORS 1968 IR 258

US TOBACCO CO V MIN HEALTH

DOYLE V AN TAOISEACH 1986 ILRM 693

KEEGAN, STATE V STARDUST COMPENSATION TRIBUNAL 1987 ILRM 202, 1986 IR 642

SOLICITORS ACT 1954, IN RE 1960 IR 269

COSTELLO V DPP 1984 IR 436, 1984 ILRM 413

DPP V OLYMPIC AMUSEMENTS BUNDORAN 1987 ILRM 320

HAMILTON V HAMILTON 1982 IR 466, 1982 ILRM 290

O'REILLY V MIN ENVIRONMENT 1986 IR 143

CLARKE, STATE V ROCHE 1987 ILRM 309

BENNION ON STATUTORY INTERPRETATION

SELANGOR UNITED RUBBER V CRADDOCK 1969 1 WLR 1773

CALCUL INTERNATIONAL & SOLATREX INTERNATIONAL, STATE V APPEAL COMMRS & REVENUE COMMRS 3 ITR 254

EAST DONEGAL CO-OP V AG 1970 IR 317

MCDONALD V BORD NA gCON 1965 IR 217, 100 ILTR 89

M V THE MEDICAL COUNCIL 1984 IR 485

MURPHY V TELECOM EIREANN 1986 ILRM 483

DPP V FLANAGAN 1979 IR 265, 114 ILTR 34

TORMEY V IRELAND 1985 IR 289, 1985 ILRM 375

Mr. Justice Barron
1

These proceedings arise out of the requirement by the Minister for Health that the several Health Boards must cut their budget deficits. By letter dated the 2nd of April 1987 the Minister set out the overall annual net expenditure which he was prepared to approve in respect of the South Eastern Health Board. It was clear from this letter that considerable overall savings would be required in the services provided in order to meet the target set. The Chief Executive Officer accordingly prepared a memorandum indicating the nature and extent of the cuts which would be required. This was submitted to the Board on the 30th April 1987 and rejected.

2

This rejection had immediate consequences. Section 31 of the Health Act,1970which limits the expenditure of Health Boards in so far as material is as follows:-

"31. (1) A health board shall not, save with the Minister's consent, incur expenditure for any service or purpose within any period in excess of such sum as may be specified by the Minister in respect of that period."

3

(2) (b) If at any time the chief executive officer of a health board is of opinion that a decision or proposed decision of the board would incur expenditure by the board in contravention of this section, he shall so inform the board and the Minister."

4

In accordance with the provisions of Section 31 (2) (b) the Chief Executive Officer of the Board by letter dated 1st May 1987 informed the Minister that the Board would incur expenditure in excess of the sum specified by the Minister. In order to resolve this situation...

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