The HSE was €158 million in the red at the end of May, Health Minister James Reilly has told the Dail.

He said the HSE's National Director for Acute Hospitals had written to all hospitals stressing the need 'to reduce costs safely and to submit additional cost containment plans'.

Minister Reilly said recent reductions in public health expenditure per capita in Ireland were the highest experienced in any OECD country with the exception of Greece.

Taoiseach Enda Kenny has admitted that the HSE would require a supplementary allocation later this year.

He expressed confidence in Minister Reilly, although it is expected that he will be moved from the Department of Health in the cabinet reshuffle next month.