With decisions on final Budget allocations due to be made at this week's Executive meeting, the political heat over funding for health appeared to be cooling.

In a report signed by its chairperson, Iris Robinson - suspended from the Assembly after refusing to withdraw accusations that Mr McGimpsey misled MLAs - the all-party committee said it "fully recognises the need for additional funding".

And members argued that without a very detailed audit of costs "it is not possible for the Committee to identify areas where spending could be scaled back."

But it also said all departments are facing significant economic pressures and "would not wish to impact on the indicative budgets of other departments set out in the draft budget".

Mr McGimpsey said he felt gratified by the support of the committee but did not want to comment further.

Mrs Robinson said last night, however: "Members supported as much funding as realistically possible going to health but acknowledged there are many other competing demands.

"I welcome the maturity of the committee in not simply calling for more and more money. The report certainly does not endorse some of the more outlandish demands by the Minister who at one point was looking for an increase in line with Whitehall departments which would have equalled 90% of the Northern Ireland block grant."

While Mr McGimpsey last week admitted "scaling down" his demands, which Mrs Robinson last night referred to as "backing down", he insisted he still needs an additional £165m over the next three years.

The health report missed a finance committee deadline for an umbrella response on the Budget, but has now been forwarded in time for this Thursday's Executive meeting.

The committee said even allowing for any increased efficiency savings about the required 3% target would not enable the Department to implement " the much-needed new service developments" and the particular pressures in the next two years.

But rather than siphoning money from other departments, the committee suggested using the cross-departmental underspend money which amounted to £155m in the last year and £138m the year before.

The report also said, however, members were concerned that the full potential level of savings resulting from the administrative shake-up within health under the review of public administration "may not be achieved".