Part of the debate – in the Senedd at 4:19 pm on 3 November 2020.
Thank you for the questions. I'll start with your final point on mental health. The health board has its own strategy that it has developed together with partners outside of the health service, 'Together for Mental Health in North Wales'. That sets out an approach to continuing the transformation and improvement of mental health services and we've had good feedback from partner organisations that the health board really did look to co-produce that strategy, and that's come about because of the change in leadership that took place after special measures were introduced. So, there has been progress and improvement in mental health services and the money that I have announced for the next three and a half years is to further drive that improvement forward. We'll continue to measure and monitor the progress; it's a key factor in all the tripartite conversations that take place between, as the Member will know, Healthcare Inspectorate Wales, the Wales Audit Office and the chief exec of NHS Wales, not just to consider north Wales, but each organisation when considering their escalation status.
In terms of the other questions, it's positive to hear Darren Millar welcome today's investment decision. On the suggestion that there is a structural deficit of £40 million, that isn't where we are. This is a recognition of the fact that we need to enable the health board to be able to move forward and to plan for the future. They have made more progress in becoming a more efficient organisation, so they have made progress in their financial management, but to allow them to get on with the longer term planning they need to do, we are resolving some of the issues. And in reference to Hywel Dda, we did give significant support to Hywel Dda in a multi-year package that allowed that organisation to move forward, and it is now positively in a better position than it was three to four years ago. So, the choice we made there has paid dividends not just for the leadership of the health service, but, much more importantly, for the staff and the public that they serve, and we're now in a position to make a similar investment choice over a multiple number of years for the people of north Wales.
We have already undertaken a review of the allocation formula to update the Townsend formula, and so we're in a position where we're going to use it for future allocations in the general formula, and that will reflect the assessment of need that exists in different parts of Wales. That looks at a range of factors, and we've had engagement with the Health, Social Care and Sport Committee previously about that review, so you can expect to see the growth in healthcare change in line with that updated allocation formula.
In terms of your point about capital, it's already the case that the health board are developing plans for a diagnostic treatment centre and a range of other service areas, but, as with every health board, we have a business case assessment process, we need to review that on a case-by-case basis and see that as part of the overall plan for the organisation. So, I do anticipate that some of the service transformation may well require capital moneys to be spent. But, actually, we've demonstrated our willingness to spend significant amounts of capital on the health service in north Wales. You'll recall the recent report into the significant money spent on Ysbyty Glan Clwyd, but on other projects too. That has highlighted improvements we have made in our business case assessment process and we need to continue doing that. So, I'm not in a position to give an open-ended commitment to capital, but, as I say, there's a recognition in making this decision that there may well be a need to have capital spending to go alongside the service improvement plans and the money that I've allocated on a revenue basis for the next three and a half years.