Unpaid debts having serious effects on local businesses

Budget cut

On average, each pharmacy is owed 100,000 euros. This is a debt that arises from the dispensing of prescribed drugs for which many older customers pay nothing - the health authority picks up the bill. The problem is that the pharmacies are feeling the effects of a 13% cutback in health authority budget which means that they simply cannot be paid until 12th January 2011.

Throughout the Balearics the debt has risen to 42 million euros for all the islands' pharmacies.

203 euros per person

This is the amount invested by the autonomous government of the Balearic Islands to cover the cost of the population's pharmaceutical requirements. With the exception of the North African enclaves of Melilla and Ceuta, the Balearics receive the lowest per capita investment for pharmaceuticals than anywhere in Spain. The average is 267 euros per person. Galicia, with an investment of 331 euros per inhabitant, comes out best.

Travel agents

The cutbacks are not only affecting the island's pharmacies. Since last April the travel agents who arrange trips for patients and their families to hospitals in Palma and Barcelona, for example, have not been reimbursed.

Travel agents play a key role in the health service's treatment for patients; with many people needing treatment that just is not available on Menorca.

Their role in the provision of travel also involves other agencies who rely on state subsidies for travel, subsidies that are unpaid. Sports clubs that travel from Menorca to fulfil fixtures as far away as the Canary Islands have run up travel bills that have not been paid since April. Once again January 2011 is being given as the date for payment of these outstanding debts.

Like the pharmacists the travel agents have been warned that the debts wull continue to stack up until January. This total debt now stands at some 2 million euros.

Deadline date

Travel agents are expected to settle bills with IATA, on the 15th day of each month. If they fail to pay within 48 hours of the passing of that date each month they lose their connection by computer with the system for making bookings.