I propose to take Questions Nos. 600, 608 to 612, inclusive, 624 and 669 together.
Arising from the HIQA report on Tallaght Hospital in 2012 which noted that a number of senior staff had been in receipt of remuneration in addition to the approved rates for their posts, my Department requested the HSE to take steps to ensure that similar payments were not being made in other agencies funded under Section 38 of the 2004 Health Act. The HSE’s Internal Audit Directorate undertook a detailed review of remuneration in these agencies. These are voluntary hospitals and disability organisations and the audit does not relate to employees of the HSE. This review was concluded in March 2013 and identified a significant number of cases in which senior personnel were in receipt of additional payments outside the terms of the approved pay scales.
Arising from a number of individual cases in which it was found that staff of Section 38-funded organisations were in receipt of salaries above approved rates, the Department of Health had, on a number of occasions between 2008 and 2011, drawn the attention of the HSE to the need to ensure compliance in this regard. While the HSE took the matter up with the organisations concerned, it is clear from the results of the more recent and intensive HSE Internal Audit exercise that a range of practices remained in force which were at variance with approved salary scales.
On 27 September 2013 my Department issued a pay policy, prepared following consultation with the Department of Public Expenditure and Reform, to the HSE. This policy, which reflects Government policy on senior public service pay generally, makes it clear that bodies funded under Section 38 of the Health Act 2004 may not supplement approved rates of remuneration with either Exchequer funding or non-Exchequer sources of funding. The pay policy makes clear that if an organisation wishes to make a business case for the continuation of an unapproved allowance, it is open to it to do so and that any such cases will be considered by the HSE (with the involvement of my Department and the Department of Public Expenditure and Reform, as necessary). A business case must also be made for the continued payment of allowances which are not encompassed by or in line with the Department of Health Consolidated Salary Scales but which may have been sanctioned in the past.
The HSE has written to each of the service providers concerned, providing them with the pay policy and seeking confirmation that remuneration arrangements are in full compliance with it. The vast majority of organisations have now responded to the HSE. The HSE will examine in detail the responses received and address any issue arising with the organisations concerned. The HSE’s approach will involve a robust process of verification and, as necessary, clarification of the position in each Section 38 organisation. In these circumstances I do not consider it appropriate that I should comment on the position in any individual organisation at this time.