Funds to clear health board debts

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NHS Western Isles is to receive £3.1m from the Scottish Government to clear debts built up in previous years.

The government said the health board had balanced its books over the past two years and the funding would give it a "clean slate".

The islands' authority will have to repay the money over six financial years starting in 2012-13.

NHS Western Isles has been dogged by significant financial problems and staff unrest in past years.

In 2008, the running of NHS Western Isles was severely criticised by the Scottish Parliament's audit committee.

MSPs said there had been failures year after year to put in adequate financial controls and rein in debts of £3.36m.

NHS Western Isles has already come a long way to turn around its financial situation Nicola SturgeonHealth Secretary

In 2006, the then health minister, Andy Kerr, intervened in the row over the running of the islands' health authority.

He installed a new interim chairman and sent a support team to the isles.

As well as Scottish Government assistance, the board now gets support from NHS Highland in areas including human resources, governance and planning.

Health Secretary Nicola Sturgeon said the £3.1m was testimony of the government's commitment to patients in the Western Isles.

She added: "NHS Western Isles has already come a long way to turn around its financial situation and we want to give the board a fresh start so that it can lay strong foundations for the future.

"Today's agreement is recognition of the progress that has been made so far and means progress can be made in a manageable way that is fair to the board and ensures patient services will not be affected."

In a joint statement, chairman John Angus MacKay and chief executive Gordon Jamieson said: "This is a very welcome and significant decision.

"It is important to us financially, as it will help us in the ongoing challenge to balance our books over the coming years in an increasingly tight public sector financial environment.

"This is also a morale booster for us all as it demonstrates the health department's recognition and growing confidence in the fact that our financial planning and control systems are improving."

They said staff had worked hard to achieve the progress made.