Charlie McConalogue
Question:58. Deputy Charlie McConalogue asked the Minister for Social Protection her proposals for the future of sick pay; and if she will make a statement on the matter. [44417/12]
View answerTuesday, 16 October 2012
Questions (58, 68)
Michelle Mulherin
Question:68. Deputy Michelle Mulherin asked the Minister for Social Protection if she will conduct a regulatory impact assessment as regards placing the burden for sick pay of employees on business. [44089/12]
View answerWritten answers
I propose to take Questions Nos. 58 and 68.
The Department will spend an estimated €847 million on illness benefit payments in 2012. The number of people claiming illness benefit and other disability payments has increased greatly in the past 10 years – a 44% increase from some 170,000 to some 247,000 between 2001 and 2010. Alongside those figures, the House will be aware that the Social Insurance Fund, from which illness benefit payments are made, is seriously in deficit, to the tune of some €1.5 billion in 2011. That is the background against which the question of introducing a scheme of statutory sick pay for both the public and private sectors is being considered.
As well as contributing to tackling the deficit in the social insurance fund, a statutory sick pay scheme would help to limit progression from short-term illness to long-term illness or disability. It would also serve to bring Ireland into line with practice in other countries in this area. And, finally, it would contribute towards enhancing the health of the workforce more generally and addressing levels of absenteeism. As has been pointed out by the OECD, where the State bears all the costs of illnesses, there is less incentive for employers (whether in the private or public sector) to engage actively in managing the costs involved.
In considering this question, I have to say again that I, along with my colleagues in Government, am acutely conscious of the pressures facing employers in the current economic climate, and in particular, the pressures facing smaller and medium-sized enterprises. The Government is equally conscious of the need to maintain competitiveness, facilitate business opportunities and generate sustainable employment. In this regard, I should emphasise that the three day waiting period which currently applies in respect of Illness Benefit would also apply in any scheme of statutory sick pay.
The question of providing for possible compensatory mechanisms for particularly vulnerable employers is just one of a range of complex issues that need to be addressed before any decision could be taken by Government on the possible introduction of a statutory sick pay scheme. In the event that Government were to decide to proceed with a scheme of this nature, an impact assessment would form part of the preparatory measures.