But he has admitted that jobs could be at risk.

In light of the VAT crisis, all government departments have been ordered to cut their budgets by 15 per cent.

The net budget for the DHSS in the current financial year is £246,788,000 so Mr Teare must find savings of £37 million.

'Whilst it has been made clear that health and social care will remain government priorities,' he said, 'the scale of the reductions and the size of the department means that the DHSS will inevitably be affected and cuts in services may have to be made.'

He said all services are currently being reviewed and nothing can be excluded.

'However, we are at an early stage in our deliberations and, contrary to some rumours which are circulating, no decisions have yet been taken,' he confirmed.

It is hoped an announcement will be made in the new year.

'We aren't going to react in a kneejerk way,' he said. 'We will consider carefully what we'll do. But at our current spend rate we will be £9 million overspent by the end of this financial year if things don't improve.'

He said that, with 60 per cent of the budget going on staff costs, job cuts must be considered.

'It's inevitable we will have to look at it,' he said. 'But we are looking at it sensitively and no decisions have been made at the moment.'

He added: 'We are in discussions with the unions and we will work with them. I'm trying to protect jobs.

'I need them to identify where we can make savings – it might be simple things like switching lights off or turning down temperature controls when people are walking around in short sleeved shirts.'

'It is a sombre message,' he said, 'but I am confident we will get through. I am not dispirited.

'I think you will see a series of measures implemented over time. There will be special interest groups pushing their cause and that is right and proper but we have to look at the whole panorama — if we take action here what will the collateral damage be over there?'

He said the department was already experiencing pressures in many areas such as the cost of more complex procedures and new drugs, and the increase in jobseekers' allowance claimants.

'I don't have any financial cushion to go into next year,' he said. 'If we aren't careful we will be very much on the back foot going into the new year.'

'Our aim is to deliver services as efficiently as possible. We are trying to make sure that administration costs absorb as little as possible and that as much as possible goes into front line services.'

The department is currently briefing its staff and seeking their suggestions for cost savings.

'We do appreciate that there will be concern, but once an overall plan has been prepared and approved by the department and the way forward is clearer a further announcement will be made,' he said.

WHAT DO YOU THINK?
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YOUR COMMENTS

why doesn't the government look at cutting back the amount of sick pay the workers get they'll save a fortune, also surely by not having sick pay for full time workers 6 months full then 6 months half it will reduce the amount of time workers are actually off sick, not everyone abuses the sick leave and pay but i'm sure there are people who do asbuse it.
JOANNE

Couldn't agree more Joanne. Sick pay should be there for the immediate problem then do what the rest of us have to do and claim your sickness benefits. One of the companies I worked for years ago had a similar scheme and it was milked to death.
PEEJAY

Sorry folk's you are all barking up the wrong tree with regard to sick pay, yes there maybe a small element of people who abuse the system but the real cost to the DHSS is in the recent Pay Modernisation scheme which sought to bring all the various employment terms and conditions under the one banner of Manx Pay Terms and Conditions. If the general public knew the extent of the pay awards, additional annual leave protected and enhanced payments I believe they would be horrified. Nurses and associated staff on the IOM are now the highest paid in Europe and senior management within the Treasury and DHSS certainly took their eye off the ball when they allowed this to happen. Well done to the Nurses, Physios, Paramedics and other's, who would have ever believed the day when Ward Sisters would be earning over 60K and Nurse Managers over 70K whilst enjoying 7 weeks paid annual leave a year. On this occasion it's not the Civil Servants reaping the rewards they just allowed it to happen!!!
PC

I agree with both Joanne and Peejay,there are certain people who take what is commonly called Sick Leave and there could be nothing wrong with them,it is a simple test which we all had to take,the firms wanted a note from the Doctor,no note,no sick pay,there should be no sick pay from firms,only the DHSS rate,the malingerers would soon get back to work if the money was low,I knew one person who retired sick,then was seen running about working in a driving job.
EORH

Government also ought to look at the low employee contributions to index linked pension schemes. Most Civil Service staff on the IOM are paying a mere 1.5% into their index-linked pensions, while the taxpayer puts in a whopping 22%. This compares with the UK norm of the employee funding 6.5% and the employer 12%. We can't continue this unwarranted extravagance - Government needs to wake up NOW.
STEVEH