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Thursday, 21 Jun 2018

Written Answers Nos. 132-151

Insurance Costs

Questions (132)

Billy Kelleher

Question:

132. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation her views on the ten proposals as outlined by an organisation (details supplied) on reducing the costs of business insurance as recently presented at the Joint Committee on Business, Enterprise and Innovation; and if proposals regarding the calculation of awards at realistic and sustainable levels will be considered with respect to the book of quantum. [27322/18]

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Written answers

Apart from motor insurance, which falls under the remit of the Minister for Transport, policy responsibility for insurance is a matter for the Minister of Finance. I as Minister for Business, Enterprise and Innovation have no direct policy responsibility for insurance.  However, officials of the Department of Business, Enterprise and Innovation, along with other Departments and Agencies, are members of the Cost of Insurance Working Group chaired by the Minister for Financial Services and Insurance, Mr Michael D'Arcy T.D.

The Cost of Insurance Working Group has undertaken a review of the factors which are influencing the increased cost of insurance. Its objective is to identify immediate and longer term measures which can address increasing costs, while bearing in mind the need to maintain a stable insurance sector. The first phase of this work involved an examination of the Motor Insurance sector. The second phase involved an examination of the Employer Liability Insurance and Public Liability Insurance sectors. 

Recommendations from the Reports of the Cost of Insurance Working Group are currently being implemented and address many of the issues raised in the proposals, including:

- Review of the Civil Liability and Courts Act 2004;

- The establishment of a Garda Insurance Fraud Unit;

- The establishment of a new National Claims Information Database;

- Measures to Protect the Consumer;

- Examining the frequency of future Book of Quantum updates in terms of any future changes to its production.

The revised Book of Quantum was published in October 2016.  The Book was compiled by independent consultants and commissioned by the Personal Injuries Assessment Board (PIAB).

This Book is not a recommendation for compensation levels but rather a reflection of the prevailing level of awards.

PIAB is considering the recommendation arising from the First Report of the Personal Injuries Commission in terms of linking future publications of the Book of Quantum to the newly standardised examination and reporting injury categories in the Whiplash Associated Disorder (WAD) scale.

The outcome of the final report of the Personal Injuries Commission on benchmarking of awards, including any relevant recommendations relating to the Book of Quantum, is also awaited.  It is expected that the Personal Injuries Commission will publish this report shortly.

Foreign Direct Investment

Questions (133)

Billy Kelleher

Question:

133. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation her views on a survey (details supplied) and the way in which Ireland has fallen out of the top ten most attractive European countries as a location for foreign direct investment. [27323/18]

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Written answers

Improving Ireland’s competitiveness is a key priority for this Government.  We are working hard to consolidate this country's traditional strengths in terms of talent, productivity and export competitiveness.

The decline in Ireland's overall ranking in this year’s Ernst and Young (EY) attractiveness survey is disappointing. However, it is worth noting that despite the change in our ranking in this EY survey, the most recent Institute for Management Development (IMD) survey states that Ireland is the 12th most competitive economy in the world and the 3rd most competitive economy in the Euro area.  This is still a significant achievement especially when you consider that the UK is ranked 20th. The World Bank’s 2017 Ease of Doing Business Report shows Ireland is ranked 17th, an improvement of one place from the previous year.

It is also important to remember that a real indication of Ireland’s competitiveness is the increase in employment across sectors and regions. In this regard, the impressive performance of clients supported by the enterprise agencies in winning exports, market share and job creation in the face of intense global competition is to be commended.

The IDA has made significant progress in diversifying their portfolio of client companies and the overseas markets that offer sources of investments here.  There were 111 new name investments in 2017, an increase of 12% compared to 2016 which saw 99 new name investments.

The Government is nevertheless conscious of our need to remain as competitive as possible. We cannot become complacent in relation to the hard-won gains of recent years. I will be working hard with my colleagues across Government, in collaboration with the IDA, to help ensure that Ireland remains a competitive destination for FDI.

Job Losses

Questions (134)

Billy Kelleher

Question:

134. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the actions she has taken to protect jobs at a company (details supplied) and put supports in place for employees who will be made redundant; if she has spoken with the management of the company regarding these job losses; and if she will make a statement on the matter. [27324/18]

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Written answers

I am aware of reports of job losses at the Liebherr plant in Killarney. IDA Ireland is liaising closely with management at the company, and I understand that the 27 workers referenced are all contract workers and that there is no threat to the permanent jobs at the plant. IDA Ireland has a strong relationship with Liebherr, who established in Killarney in 1958. In 2017, the IDA supported the company with an R&D project and comprehensive training programme to upskill staff over a two year period. IDA Ireland will continue to work with Liebherr as the projects are being implemented.

Gender Balance

Questions (135)

Billy Kelleher

Question:

135. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the policies in place to increase female participation in the labour force; and if an analysis of this area has been carried out. [27325/18]

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Written answers

My Department understands the importance of female participation in the labour market. As we draw closer to full employment, it is essential that enterprise in Ireland has access to high-quality, adaptable and flexible talent pools. Enhancing female participation has the potential to address the growing need for skills and talent and to deliver significant social and gender equality benefits. With this in mind, I have included an action in the Action Plan for Jobs 2018 relevant to female participation. Action 28 aims to ‘identify relevant policy issues for cohorts with low participation rates based on patterns of labour market participation’. My Department has lead responsibility on this action and is currently working with several other Government departments to ensure the completion of this action in the second half of the year.

Policy responsibility for participation falls across several government Departments. A number of measures are underway to facilitate female participation in the labour market. It is clear that to make greater female participation a reality, barriers to entering/re-entering the labour market must be addressed. In recent years, several initiatives have been launched to facilitate the return of women to employment. These include:

- Action 27 in the Action Plan for Jobs 2018 relates to the development of the Affordable Childcare Scheme. Access to affordable childcare is often identified as a barrier to women’s labour market participation in Ireland. The Department of Children and Youth Affairs have responsibility for the continued implementation of reforms to existing schemes and progressing the Affordable Childcare Scheme. The deadline for this action is also for the latter half of this year.

- The Department of Justice and Equality introduced the ‘Women Returning to the Workforce Initiative’ in 2017. The supports range from confidence building, career guidance and support in completing applications, to training programmes and work placements.

- The Department of Justice and Equality launched the ‘National Strategy for Women and Girls’ in 2017.  This strategy focuses on the needs of working women by proposing to continue to increase investment in childcare, to take action to tackle the gender pay gap, to improve the conditions of women in precarious employment and to provide additional help to women entrepreneurs.

- The Department of Employment Affairs and Social Protection implements the ‘Pathways to Work Programme’ which aims to increase active labour market participation by people (including lone parents and people with disabilities) of a working age so as to help ensure a supply of labour at competitive rates and to minimise welfare dependency. This strategy includes specific actions to increase labour market participation and employment progression of people who are not currently active in the labour market and to apply the concept of active inclusion as a guiding principle – particularly from 2018-2020.

- Science Foundation Ireland (SFI) aims to play a strong role in addressing gender imbalance in science by committing to increase the representation of women among SFI award holders to 30% by 2020 and to improve the representation and progression of women in all aspects of STEM careers in Ireland. Through its Starting Investigator Research Grant (SIRG) programme, SFI has piloted an initiative to encourage increased applications from female researchers. This has resulted in a significant increase in the number of SIRG applications from and SIRG awards to women.

- Industry have also initiated programmes to attract women back to the workforce. ‘Women ReBoot’ is a programme led by Technology Ireland and Skillnets (which is funded through the National Training Fund through the Department of Education and Skills and private industry). The programme aims to redress the gender imbalance in tech by attracting women with STEM experience back to the sector. This is delivered through a mix of coaching, online learning, networking skills and work placements in leading tech companies. Women ReBoot has been highly successful in helping participants secure employment.

Skills Shortages

Questions (136)

Billy Kelleher

Question:

136. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the timeline for implementation of all the recommendations regarding the recently published report by the Expert Group on Future Skills Needs, Addressing the Skills Needs Arising from the Potential Trade Implications of Brexit; and the details of all customs awareness and higher level customs clearance training and advice for third country trading that are in place. [27326/18]

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Written answers

The Expert Group on Future Skills Needs (EGFSN) is an independent body tasked with advising the Government on the current and future skills needs of the Irish economy, as well as any other issues that impact on the national potential for enterprise and employment growth.

I welcome the recent EGFSN report on "Addressing the Skills Needs Arising from the Potential Trade Implications of Brexit" as an important contribution to the evidence base on Brexit and the Government's wider contingency planning. 

My Department is now formally engaging with the responsible bodies identified in the report to action and formally progress its recommendations. The timelines for implementation are being guided by the advice offered by the EGFSN. This is complementing the work the Government is already undertaking to ensure the enterprise base can respond to Brexit through enhancing its capacity to compete, innovate and trade.

On the customs awareness and higher level customs clearance training and advice currently in place, I refer the Deputy to the details of this provision contained in the EGFSN report.

Industrial Disputes

Questions (137)

Billy Kelleher

Question:

137. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation her views on a matter (details supplied). [27327/18]

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Written answers

I understand that the dispute which the deputy is referring to relates to certain terms and conditions of employment, including that of pay and contractual security, which the trade union Mandate is seeking to negotiate with the company on behalf of its members.

At the outset, I would emphasise that Ireland’s system of industrial relations is, essentially, voluntary in nature and that responsibility for the resolution of industrial disputes between employers and workers rests in the first instance with the employer, the workers and their representatives. 

For its part, the State provides the industrial relations dispute settlement mechanisms i.e. the Workplace Relations Commission (WRC) and the Labour Court to support parties in their efforts to resolve their differences. The WRC and the Labour Court are independent statutory bodies and conduct their quasi-judicial functions independently and as Minister, I have no role in this regard.

As the deputy points out, this dispute was before the Labour Court earlier this year and in April, the Labour Court issued a recommendation urging the parties to engage with each other in order to seek agreement in relation to the matters at issue. In its recommendation, the Labour Court indicated also that if, following such engagement, matters remained unresolved, the parties should avail of the services of the Workplace Relations Commission and the Court in furthering efforts to secure resolution.

As Minister, I would encourage both parties to engage constructively with each other on the issues in dispute and to avail of the services of the WRC and the Labour Court which stand ready to assist in the resolution of disputes to reach a resolution by agreement. This will lead to a positive outcome for the company, its employees and the customers that it serves.

Job Creation

Questions (138)

Brendan Smith

Question:

138. Deputy Brendan Smith asked the Minister for Business, Enterprise and Innovation her plans and the plans of the industrial promotion agencies to assist in 2018 and 2019 in the maintenance of existing employment and in job creation throughout County Cavan; and if she will make a statement on the matter. [27330/18]

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Written answers

As Minister for Business, Enterprise and Innovation, regional development is a key priority of mine and I am focused on maintaining existing jobs while also increasing the level of employment and investment in every county in Ireland, including Co. Cavan.

The North East/North West Regional Action Plan for Jobs is a key policy response for supporting employment growth in the Border region. The core objective of the Action Plan is to increase employment in the region by 10-15%, resulting in the delivery of 28,000 jobs by 2020. We are aiming to ensure the unemployment rate is within the 1% of the State average.

Some 12,000 jobs were created in the Border region since the regional Action Plans for Jobs initiative was launched in January 2015 while the unemployment rate in the Border region has fallen since then and now stands at 4.9% according to the CSO (Q4 2017).

Furthermore, Live Register numbers continue to fall in County Cavan, down from 7,793 in July 2012 to 3,655 in May 2018, a decrease of over 4,000. There is of course always room for improvement but the latest CSO figures are testament to the Government’s efforts to help create jobs and reduce unemployment.

I recently launched the second call of the Regional Enterprise Development Fund, which is aimed at supporting the development and implementation of collaborative and innovative projects that can sustain and add to employment at a national, regional and county level.  I would encourage all entities, including in the Cavan region, to use this fund to support job creation. The closing date is 3pm on Thursday 28th June.

Twenty-one successful applicants representing all regions of the country have secured up to €30.5m for their projects in the first competitive call. Cavan County Council and LEO Cavan were successful in acquiring funding as part of the Upper Shannon Erne Future Economy Project under the first Enterprise Ireland Regional Enterprise Development Fund call, for the development of a Digital Hub Facility in Cavan.

Enterprise Ireland (EI) together with the Local Enterprise Offices (LEOs) play a critical role in driving and nurturing entrepreneurship all the way from an originating idea at local level, to taking-on global markets. In 2017, EI paid €2.5m to companies in Cavan.

Total employment in EI supported companies in Co. Cavan now stands at 5,451, an increase of 28% since 2012. In May, EI facilitated a meeting of LEO and EI engineering companies from Cavan, Louth and Meath with a view to creating an engineering cluster in the region.

The Local Enterprise Office (LEO) Cavan serves as the first stop shop to provide strategic, technical and financial supports and services to start, grow and develop small businesses in each county.

Some specific supports LEO Cavan provides for the development of existing indigenous businesses include the LEAN for Micro programme, Technical Assistance Grants for Micro Exporters and the Co-Innovate Programme. In July 2018, LEO Cavan is delivering a number of workshops and information seminars to assist local businesses with accessing these supports and guiding them towards growing their businesses by exploring export markets, trading online opportunities, innovation projects, cross border research and development collaborations and trade partnerships.

Last year LEO Cavan created 207 new jobs. They provided training to 1,293 clients and mentoring to 91 clients.

Regarding foreign investment, Cavan has seven multinational companies employing 1,555 people. The county maintains an impressive base of FDI with companies such as CG Power Systems, Wellman International and Gyproc St. Gobain. We are making significant progress towards achieving our regional development targets, which include a 30% to 40% increase in FDI in the North-East Region by 2019.

Finally, in relation to Brexit, my Department and its agencies are carrying out extensive work to prepare for all eventualities. I was delighted to attend and speak at the Enterprise Ireland and InterTradeIreland Brexit Advisory Clinic in Cootehill, Cavan in March of this year. These clinics provide the opportunity for companies that may be affected by Brexit to take immediate action to address their exposure.

Industrial Development

Questions (139)

Brendan Smith

Question:

139. Deputy Brendan Smith asked the Minister for Business, Enterprise and Innovation when decisions are likely to be made in relation to the identification of suitable sites as locations for the establishment of data centres; and if she will make a statement on the matter. [27331/18]

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Written answers

In 2017 IDA Ireland appointed Jacobs Engineering, supported by AOS Planning, to identify potential strategic land banks in Ireland that would be particularly suitable for the sustainable development of data centre projects. The study was commissioned to understand what locations in Ireland are best placed to win and sustain this type of investment. The review process was conducted in a number of stages and focused on evaluating all potentially viable land options that are compatible with the complex and ever evolving needs of data centre investments.

The national site evaluation process has now been completed by Jacobs.  As previously indicated the study is for internal IDA Ireland purposes only and is not intended for publication due to its commercial sensitivity.

Over recent years, leading international technology and computing companies have announced significant data centre investments for Ireland and the goal is to ensure that this trend continues. IDA Ireland, supported by the relevant key stakeholders, will continue to highlight credible and flexible property solutions that form part of the competitive value proposition for this sector.

Foreign Direct Investment

Questions (140)

Brendan Smith

Question:

140. Deputy Brendan Smith asked the Minister for Business, Enterprise and Innovation if a centre (details supplied) will be given further consideration in respect of the location of inward investment; and if she will make a statement on the matter. [27332/18]

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Written answers

IDA Ireland markets Co. Cavan as part of its North-East region, together with Louth and Monaghan. There are currently seven multinational companies in Cavan employing a total of 1,155 people.

The IDA Ireland business and technology park in Killygarry, Co. Cavan covers approximately 17 hectares.  Of this, around 11 hectares are currently available for marketing.  The main tenant on the park is ATA Group, which is an Enterprise Ireland client company.

IDA Ireland is actively marketing the park to both existing and prospective clients as a location for overseas investment.  The Agency will also consider opportunities to utilise the Park to attract other, less traditional investments into this location. These are investments which don’t fall under the general remit of IDA or Enterprise Ireland but which could create investment and employment opportunities in Cavan.

The Agency has a dedicated regional manager for the North East/North West Region and has an office in the Cavan Innovation and Technology Centre.  As part of its strategy to encourage investment to the area the Agency is focusing on sectors including agri-food, manufacturing, tourism, internationally traded services. The IDA also regularly engages with key stakeholders on the ground in Cavan including local authorities, public bodies, the education sector and companies from both its own client base but also from the indigenous sector. 

Attracting FDI to regional areas is not without its challenges. That’s largely because there is a global trend to base FDI around large urban areas. Quite often companies also want to be located near competitors or clusters of other similar enterprises. As a result, it’s unavoidable that some businesses are intent in investing in larger urban areas. That sometimes is just a commercial reality. 

Nevertheless I recognise that there is room for improvement in Cavan and we are working hard, across Government, to further unlock the economic potential of the area. The Enterprise Agencies remain pivotal to this and they continue to engage with their clients, and with one another, to create jobs and source new investment for the region.

Commencement of Legislation

Questions (141, 198)

Aengus Ó Snodaigh

Question:

141. Deputy Aengus Ó Snodaigh asked the Minister for Health when the Children and Family Relationships Act 2015 will be commenced (details supplied). [27140/18]

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Mary Butler

Question:

198. Deputy Mary Butler asked the Minister for Health when Parts 2 and 3 of the Children and Family Relationships Act 2015 will be commenced; and if he will make a statement on the matter. [27328/18]

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Written answers

I propose to take Questions Nos. 141 and 198 together.

A number of technical drafting issues have come to light in relation to Parts 2 & 3 of the Children and Family Relationships Act 2015. Consideration of a resolution to these issues and the likely need for primary legislation are close to conclusion and I expect to be in a position to progress shortly.

Hospital Consultant Remuneration

Questions (142)

Barry Cowen

Question:

142. Deputy Barry Cowen asked the Minister for Health the cost of the agreement reached with consultants in June 2018; the cost of retrospective payments to consultants as a result of the agreement; the cost of additional pay per year; the expected impact on the fiscal space for budget 2019; and if he will make a statement on the matter. [27361/18]

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Written answers

Last Friday Minister Donohue and I announced that a settlement agreement in relation to cases taken by consultants seeking payment of increases provided for in Consultant Contract 2008 was concluded between the State and the consultants’ representative bodies after two weeks of intensive negotiations. This agreement applies to 10 lead cases that were before the High Court and other cases that involved the same contract and other eligible consultants who had not initiated cases.

The settlement terms achieved represent a substantial reduction on previous estimates of potential liability of up to €700 million. Under the terms of the settlement, it has been agreed to correct the pay rate only for those Consultants who signed ‘Consultant Contract 2008’ between 25 July 2008 and 30 September 2012. Correction of remuneration/pension entitlements will be effective from the ‘Date of Settlement' (15 June) but payable from January 2019.

The total cost of retrospective payments (“arrears”) under the agreement is estimated at €182 million. The additional cost of correcting the pay rates is approximately €62 million per year backdated to the ‘Date of Settlement’.

Payments of arrears will be phased over 2019 and 2020, as follows:

- 40% (€73 million) payable on or before 01 June 2019, and

- 60% (€109 million) payable on or before 01 March 2020.

The impact of the settlement on the fiscal space for 2019 is a matter for the Minister for Finance, Public Expenditure and Reform.

While this settlement is costly it is the most cost-effective outcome for the Exchequer and the taxpayer resulting in significant savings and prevents a lengthy and costly legal battle. This settlement brings to conclusion a disagreement between the parties that has been ongoing since 2009 and I look forward to a reinvigorated working relationship with consultants.

Home Help Service Provision

Questions (143)

Pearse Doherty

Question:

143. Deputy Pearse Doherty asked the Minister for Health if extra home help hours will be allocated to a person (details supplied) in County Donegal; and if he will make a statement on the matter. [27124/18]

View answer

Written answers

As this is a service matter I have asked the Health Service Executive to respond directly to the Deputy as soon as possible.

Home Care Packages Data

Questions (144, 146)

Fiona O'Loughlin

Question:

144. Deputy Fiona O'Loughlin asked the Minister for Health the number of home care packages being provided in each LHO area. [27131/18]

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Fiona O'Loughlin

Question:

146. Deputy Fiona O'Loughlin asked the Minister for Health the number of persons on the waiting list for a home care package in each LHO area; and the number waiting 0 to 3, 3 to 6, 6 to 12 and more than 12 months, respectively. [27133/18]

View answer

Written answers

I propose to take Questions Nos. 144 and 146 together.

As these are service matters I have asked the Health Service Executive to respond directly to the Deputy as soon as possible.

Medical Card Data

Questions (145)

Fiona O'Loughlin

Question:

145. Deputy Fiona O'Loughlin asked the Minister for Health the number of persons covered by medical cards as of 1 May 2018. [27132/18]

View answer

Written answers

As of 01 May 2018 1,587,447 people held eligibility for a medical card.

Question No. 146 answered with Question No. 144.

General Practitioner Services

Questions (147)

Fiona O'Loughlin

Question:

147. Deputy Fiona O'Loughlin asked the Minister for Health the number of persons covered by general practitioner visit cards as of 1 May 2018. [27134/18]

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Written answers

As of 01 May 2018, 496,583 people held eligibility for a GP visit card.

General Practitioner Contracts

Questions (148)

Robert Troy

Question:

148. Deputy Robert Troy asked the Minister for Health if matters raised in correspondence by a person (details supplied) will be examined. [27135/18]

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Written answers

The GMS GP contract stipulates that fees are not paid to GPs by the HSE in respect of certain medical certificates which may be required, for example, "under the Social Welfare Acts or for the purposes of insurance or assurance policies or for the issue of driving licences".

Consultation fees charged by GPs outside the terms of the GMS or GP Visit Card contracts are a matter of private contract between clinicians and their patients. I have no role in relation to such fees.

Hospital Appointments Status

Questions (149)

Peter Burke

Question:

149. Deputy Peter Burke asked the Minister for Health if an appointment for a person (details supplied) will be expedited [27137/18]

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Written answers

Under the Health Act 2004, the Health Service Executive (HSE) is required to manage and deliver, or arrange to be delivered on its behalf, health and personal social services. Section 6 of the HSE Governance Act 2013 bars the Minister for Health from directing the HSE to provide a treatment or a personal service to any individual or to confer eligibility on any individual.

The National Waiting List Management Policy, a standardised approach to managing scheduled care treatment for in-patient, day case and planned procedures since January 2014, has been developed to ensure that all administrative, managerial and clinical staff follow an agreed national minimum standard for the management and administration of waiting lists for scheduled care. This policy, which has been adopted by the HSE, sets out the processes that hospitals are to implement to manage waiting lists.

In relation to the particular query raised, as this is a service matter, I have asked the HSE to respond to the Deputy directly.

Hospital Appointments Status

Questions (150)

Aengus Ó Snodaigh

Question:

150. Deputy Aengus Ó Snodaigh asked the Minister for Health when a person (details supplied) will have maxillofacial surgery which has been delayed and is causing the person distress; and the reason for the long delay for the operation [27141/18]

View answer

Written answers

Under the Health Act 2004, the Health Service Executive (HSE) is required to manage and deliver, or arrange to be delivered on its behalf, health and personal social services. Section 6 of the HSE Governance Act 2013 bars the Minister for Health from directing the HSE to provide a treatment or a personal service to any individual or to confer eligibility on any individual.

The National Waiting List Management Policy, a standardised approach to managing scheduled care treatment for in-patient, day case and planned procedures, since January 2014, has been developed to ensure that all administrative, managerial and clinical staff follow an agreed national minimum standard for the management and administration of waiting lists for scheduled care. This policy, which has been adopted by the HSE, sets out the processes that hospitals are to implement to manage waiting lists.

In relation to the particular query raised, as this is a service matter, I have asked the HSE to respond to the Deputy directly.

Hospital Consultant Remuneration

Questions (151)

Stephen Donnelly

Question:

151. Deputy Stephen S. Donnelly asked the Minister for Health if he will report on the settlement reached with hospital consultants on 15 June 2018; and if he will make a statement on the matter. [27142/18]

View answer

Written answers

Last Friday Minister Donohoe and I announced that a settlement agreement in relation to cases taken by consultants seeking payment of increases provided for in Consultant Contract 2008 was concluded between the State and the consultants’ representative bodies after two weeks of intensive negotiations. This agreement applies to 10 lead cases that were before the High Court and other cases that involved the same contract. This case was due to commence on 05 June 2018 however both agreed to an adjournment to facilitate settlement discussions.

The settlement terms achieved represent a substantial reduction on previous estimates of potential liability of up to €700 million. Under the terms of the settlement, it has been agreed to correct the pay rate only for those Consultants who signed ‘Consultant Contract 2008’ between 25 July 2008 and 30th September 2012. Correction of remuneration/pension entitlements will be effective from the Date of Settlement (15 June) but payable from January 2019.

Under the Settlement an eligible Consultant shall be entitled to retrospective payment (“arrears”) of remuneration and/or retrospective payment of pension entitlements as follows:

- For consultants who have initiated proceedings against the State: for a period commencing up to six years prior to the date of issue of proceedings and ending on the Date of Settlement.

- For non-litigating consultants: for a period of up to six years prior to the Date of Settlement and ending on the Date of Settlement.

Any retrospective payment will be calculated as 55% of the difference between the remuneration paid to a Consultant during the period of retrospection and the remuneration which he or she would have been paid if the provisions of the Consultants’ Contract 2008 had been fully applied.

The estimated costs which will arise from the settlement reached are €182m for arrears, and ongoing costs of €62m per annum from 2019, backdated to the date of settlement in June 2018. Payment of the arrears will be phased over 2019 and 2020. While this settlement is extremely costly it is the most cost-effective outcome for the Exchequer and the taxpayer resulting in significant savings and prevents a lengthy and costly legal battle.

The IHCA and IMO have committed to recommending the agreement to members and will not support any progression of the current cases that have been initiated or any new litigation. 

All consultants who accept the terms also affirm the terms of Consultant Contract 2008 and accept the importance of compliance with the terms of that Contract. The agreement confirms the commitment of the parties to compliance with contractual obligations to ensure more timely delivery of effective care to patients. It specifically provides for co-operation in relation to arrangements put in place to verify the delivery of the consultant’s contractual commitments, in particular those relating to private practice. This is going to help in ensuring accountability, compliance with the contract by consultants and improving services to patients.

This settlement brings to conclusion a disagreement between the parties that has been ongoing since 2009 and I look forward to a reinvigorated working relationship with consultants.

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