Troubleshooters are being sent in to Cardiff's troubled Morriston Hospital trust to help managers find more than 5m efficiency savings.

A team of experts, led by Professor Brian Edwards of Sheffield University, will join the trust in September for a 'root and branch scrutiny of all areas of expenditure'.

The move follows Welsh Office-led 'wide ranging and robust talks' between the trust and Iechyd Morgannwg health authority.

Morriston has a history of problems linked to financial pressures and service reconfiguration.

In 1996, a row over attempts to reduce the number of medical jobs to help save 3.5m led to the departure of senior managers.

Latest figures show that Morriston's deficit fell from 2.7m in 1996- 97 to 1.6m in 1997-98. But it has to make 3.7m savings in 1998-99 and a further 2m in 1999-2000.

Trust business manager Huw Williams said this would be a 'tall order' because it had already taken out 'significant sums'.

Welsh Office health director Peter Gregory was quizzed on the situation at Morriston when he appeared before the Welsh affairs select committee in London last week.

He had to tell MPs that NHS finances in Wales had 'deteriorated' - although he denied that spending was out of control.

HAs had a 13.8m cumulative deficit in 1996-97, while trusts had a 1m surplus. Unaudited figures for 1997-98 reveal that HA deficits in Wales have risen to 24m and trust deficits to 10m.

Mr Gregory said the increased deficits were the result of rising referral levels, a drive for efficiency savings, GP fundholder overspends and the impact of HA reconfiguration.

Martyn Jones MP asked if financial monitoring by the Welsh Office was adequate.

Mr Gregory replied that monthly monitoring of trusts and HAs was 'rigorous' but admitted that improvements could be made.

He said eight out of 30 trusts had failed to achieve one or more of their objectives in 1996-97, but only Morriston Hospital's 'deep seated' problems gave cause for concern.

The largest HA deficit is faced by Dyfed Powys HA, which is forecasting a 9.3m cumulative debt this year.

A Dyfed Powys spokesperson told HSJ: 'We can manage this - and will continue to manage this - through the use of balances and a short-term loan from the Welsh Office.'

Mr Gregory also told the committee that the net cost of a massive trust reconfiguration exercise which will roughly halve the number of trusts in Wales will be 5.4m in 1999-2000.

The Welsh Office claims that net recurrent savings thereafter will rise to 7m in 2002-03.

Mr Gregory acknowledged that there was 'some scepticism' over the consultation process but denied suggestions from committee members that 'most' of the reconfiguration proposals were being vigorously opposed.

Protest groups have been formed in parts of Dyfed Powys and Gwent to fight to retain locally based trusts.