I propose to take Questions Nos. 49, 60, 61, 74 and 243 together.
Under section 39 of the Health Act 2004, the HSE provides financial assistance to organisations by means of a grant. Section 39 legally underpins the provision of services similar or supplementary to a service that the HSE may provide. In 2017, the HSE provided funding of approximately
€800 million to over 2,200 of these agencies. The funding provided can range from high value, in their millions, to relatively modest amounts of just a few hundred euro.
Staff in these organisations were not subject to the provisions of FEMPI legislation. They were not a party to the Public Service Agreements and are not covered by the pay restoration provided for in these Agreements. While it is understood that pay savings were made by the organisations, the precise mix of pay cuts or other savings measures will have varied. Also, where there were pay cuts, it is not at all clear that they were applied in a universally consistent manner, as is the case in the public sector.
Therefore, the Government believes that we need a much deeper understanding of the funding position in these grant-aided organisations and the true extent of the pay reductions applied. In establishing the position, I am obliged to have regard to the legitimate taxpayer and value for money issues that arise. That is why I have requested that the HSE engages with the Section 39 organisations to establish the facts around what cuts were applied and how and when they were implemented. A plan then needs to be developed in relation to possible solutions and their implementation. I have asked that the Executive complete this exercise as soon as practicable, having regard to the large number of organisations concerned. Officials from my Department and the Executive are continuing to engage with the relevant trade unions to ensure that this work is carried out on a consensus basis.
I am very mindful of the threatened industrial action in a number of these organisations, which is scheduled to commence with a one day work stoppage on 14 February 2018. I believe that the process which I have outlined should address the concerns raised by the trade unions in a fair and transparent way. I can assure the Deputies that the Government and I are committed to doing all that we can to ensure that there is no disruption to the delivery of health services.