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JOINT COMMITTEE ON HEALTH AND CHILDREN díospóireacht -
Thursday, 21 Apr 2005

Travers Report: Presentations.

I welcome the Minister for Enterprise, Trade and Employment, Deputy Martin, who will discuss the report on certain issues of management and administration in the Department of Health and Children associated with the practice of charges for persons in long-stay care in health board institutions and related matters. I also welcome Dr. Muiris Mac Carthaigh from the Institute of Public Administration who will compile a report for the joint committee and Ms Lia O'Hegarty, parliamentary legal adviser.

Members are reminded of the long-standing parliamentary practice to the effect that they should not comment on, criticise or make charges against a person outside of the House or an official by name or in such a way as to make him or her identifiable. The Minister will speak briefly on the main findings of the report after which members may ask questions. I invite the Minister to open proceedings.

Rather than repeating the details of my statement in the Dáil on the publication of the Travers report, I propose to use this short opening statement to address specific elements of the subsequent commentary on the report's findings. In particular, I will deal with some of the many misrepresentations which continue to be spread about the facts outlined in the report.

While this is a point which has been sidelined so far in the joint committee's deliberations, it is worth remembering that this is an issue which first arose in 1976. There is no doubt that in the subsequent 28 years there were occasions when it should have been addressed. I will mention just a few of the examples detailed in the report. The foundation decision, which lies at the root of this issue, was taken back in 1976. In 1979 the Department's legal adviser reiterated concerns about the 1976 regulations. In January 1982 a specific review of the regulations stated they had no legal basis. In 1987 a legislative change was proposed but not proceeded with. In 1992 a review of long-stay charges was completed and legislative change advocated. In 1994 the health strategy stated the legislative basis for charges was inadequate and promised legislative change. These examples alone involve six separate Administrations.

The Travers report is fair in pointing to systems weaknesses and calling for a new approach to risk assessment within Departments. I strongly agree with the conclusion that the structural reform agenda represents the chance for a new beginning in the Department and this is exactly what it was intended to achieve. As Minister, I was conscious of the enormity of the pressures placed on all parts of the Department and the problems this caused in allowing the proper management of issues. In recent decades there has probably been no time in which the Department has had an opportunity to step back and take a more structured and systematic approach to problems as they arise.

For the Department of Health and Children to manage the sector to the greatest effect, it needs to be able to move away from fire-fighting. The radical restructuring of service planning, delivery and oversight contained in the structural reform programme is specifically designed to achieve this objective and ensure administrative pressures do not lead to errors such as the leaving in place of an illegal charge for 29 years.

It is unfortunate that the basic focus of certain Deputies involved in this inquiry is not to try to understand what happened but to try to do as much political damage as possible. In some cases, facts have been deliberately misrepresented and it is increasingly clear that completely unfounded rumours are being actively spread. Having prejudged the issue before receiving the Travers report, some Deputies are now ignoring or rubbishing the report because it does not say what they want it to say. The amount of time spent throwing around new and unfounded rumours and misrepresentations is becoming ever more obvious.

I will deal first with the CEO MAC meeting of 16 December 2003. The facts show that this was an item listed as being for brief mention, while other issues were intended to and did dominate the meeting. Statements to the effect that this was a major item of discussion are clearly false. I did not miss the item due to being late. The facts show that the very reason the item was taken in my absence was that it was not viewed as urgent or of dramatic significance. After a short discussion, the correct decision was taken by those present that the Attorney General's advice should be sought. There was no statement or implication that there was a major issue of retrospection or that this was an issue which had first arisen in 1976 and had been considered at various times since.

The joint committee should be aware that it was not and is not unusual for legal issues to arise in the health services; they arise all the time. This was, for example, one of the reasons I sought an increase in the legislative expertise available to the Department. Throughout my service as Minister in different Departments I have shown a willingness to address difficult and controversial legal issues as they arose. The core of this issue is that certain Deputies are seeking to claim there was a clarity of information available to me such that I should have intervened immediately. This is simply not borne out by the facts and no amount of background briefing and partisan charges can change this.

If the required information, as outlined in the Travers report, had been available to me or my staff, action would have been taken to immediately address an issue which we only now know has been around since 1976. While the briefing material could not reasonably have been considered by me or many others before the meeting because it was provided so late and in the middle of a crowded schedule, it comes nowhere near giving the level of clarity on the issues that some Deputies have claimed. As the report notes, the briefing material stated there were varying legal opinions on the issue of long-stay charges and recommended the seeking of further advice. The idea that any person who had read the briefing and had been present for the discussion at the meeting must have known about the full nature of this problem simply does not stand up to objective scrutiny.

With regard to the follow-up to this discussion, there is no reason a reference to the Attorney General, which was decided upon without requiring my involvement and did not require my signature, would have been referred to me. In fact, it would have been highly unusual for it to have been referred to me as the information available to the committee has confirmed that direct referral from officials to the Office of the Attorney General was the general and correct procedure adopted in the Department. As a matter of course it was the outcome of advice which was referred to me when relevant and clearly that would have been in the context of a decision being required from me. It is clear that I was not shown or asked to comment on the file.

It was my experience of the officials in the private office that they handled correspondence efficiently. No person from the private office remembers having sight of or handling the file. I have no reason to doubt this. It should be noted that during 2004 lengthy meetings were held on the Health Service Executive legislation, including on one occasion a half-day meeting. At no stage was it ever suggested at one of these sessions that we would consider adding a stand-alone measure relating to long-stay nursing home charges or that such a measure was required to regularise an improper levy.

For the record and in order to deal with some of the innuendoes read into the record by certain Deputies, I have not and do not remove official documents from Departments. The same policy has been followed by my staff. On leaving my last two Departments all records except personal constituency files remained in those Departments.

It is also worth clarifying some matters regarding my advisers. It is not the job of advisers to replace or duplicate the Civil Service. It is not their job to be answerable for every issue being handled at every moment in a Department. Deputies will be aware that the Public Service Management Act underpins the clear distinction between advisers and civil servants. In this country we have chosen a system of political support for Ministers, which gives them dramatically less support than in other countries, and our expectations of them should take this into account. It is not in any way reasonable to expect that advisers should be actively on top of an item presented as meriting brief mention and requiring clarification before a policy discussion would be required.

A certain degree of unreality has entered into the discussion in regard to the interaction between a Cabinet Minister and Ministers of State in a Department. I regularly met the three Ministers of State in my last Department either individually or collectively. The committee will be aware that there has been a move to a system of statutory instruments delegating functions to Ministers of State. This is explicitly to increase the ability of Ministers of State to get things done without always having to refer to their senior Minister for a decision. In practical terms this meant that we met regularly when an issue was live. In addition, we would review the Minister of State's area of responsibility in the context of biannual reviews, MAC meetings, the Estimates process and legislation.

It would have been foolish to have a system requiring more regular review sessions. This would have diverted substantial ministerial and official time away from the full agenda carried by everyone. The agenda of any Minister in the Department of Health and Children is extremely broad. In addition to general work it requires one to react to a great deal of issues which suddenly emerge and require substantial and immediate attention.

The record shows that I was fully accessible to staff and willing to address issues even at short notice. At no time did I shy away from sensitive issues because they might have cost implications or because they might reflect badly on Government. This was a policy I followed at all times. I was the first Minister for Education and Science willing to face up to the State's historical responsibility for the treatment of children in residential institutions.

In the normal course of events with an emerging issue, the relevant officials would seek a meeting with me through my private secretary directly or through an adviser. Where the issue was viewed as being particularly serious the Secretary General would attend in addition to the relevant adviser and officials in charge of the issue. As the record in my diary shows, meetings on matters of substance were noted, specific briefing notes were prepared and a record of decisions that would have been taken. All of the information which has emerged on the treatment of this particular issue confirms that it was at no stage considered serious enough to merit being raised with me in line with this normal practice. The absence of any mention whatsoever of the issue in the October 2004 briefing material clearly confirms that it was not being treated as an active matter involving the Minister. The evidence presented to the committee also confirms this. It appears that this may have been the same manner in which the issue was dealt with at different times since 1976.

In more general terms it is almost impossible to discuss health affairs without discussing eligibility criteria. It is a regular item for discussion in the Dáil and in policy discussions. It has been addressed in every significant statement of health policy for at least the past 20 years. However, this was very different from discussing the specific point that a charge was being illegally levied since 1976 and that action was required to regularise the situation. The facts show that this was not drawn to my attention either formally or informally.

I thank the Minister for attending the meeting. The purpose of the committee's deliberations is to draw up its own report into what happened in the Department of Health and Children and to make recommendations for the future. In order to do so we must ask questions of a number of people.

The committee has already heard significant evidence concerning the briefing provided to all participants at the MAC meeting on 16 December 2003. The Minister of State, Deputy Tim O'Malley, indicated that on reading the briefing document he considered that it would give rise to significant political, legal and financial responsibilities. We heard from Mr. Kelly yesterday that when he heard this at the meeting and read the briefing document he considered it was a significant issue that required immediate attention. He subsequently set up a sub-committee within the Department which drew up a report in a short time. In the view of Mr. Travers the briefing provided for this meeting was substantive. The Minister quoted from the report that Mr. Travers felt this was a missed opportunity to brief him. It was also a missed opportunity in other ways due to the fact that the Minister arrived late and left early for another meeting.

I did not leave for another meeting.

The Minister said he had a meeting in a side room on the Hanly report.

That took place after the meeting had concluded.

That was a missed opportunity for the Minister to have a meeting with his CEOs and senior departmental officials with whom he did not meet on any other occasion in 2003. A substantive briefing was delivered to the Minister which he admitted he did not read before the meeting. He also admitted he did not attend the briefing on it during the meeting. He appeared to indicate that he never read the briefing after the meeting either. What system did the Minister have in place for making him aware of such information? It would be interesting for the committee to hear this. I do not believe it was a missed opportunity to brief the Minister, rather it was an opportunity the Minister missed to get properly briefed on this issue.

In his submission to Mr. Travers, and again yesterday, Mr. Kelly confirmed that he briefed the Minister on the nursing home charges issue at a meeting on 10 March 2004 during which departmental business was discussed. Mr. Kelly make it quite clear how this came about, that it was in regard to the service plan but he felt that was not discussed in depth because it was more or less completed. He stated that he raised the issue of illegal nursing home charges with the Minister in the context of possible legislation because he considered that came within the responsibility of the Minister. Only a Minister or Minister of State can instigate legislation in the Oireachtas. He is quite clear that he raised the issue with the Minister.

It is strange that the Minister has no recollection of this being mentioned even though Mr. Kelly is quite clear about it. Something else on which Mr. Kelly is quite clear is that he briefed the Minister on nursing home charges when he spoke to the Minister before the MAC meeting in December 2003. He is quite clear on that even though the Minister recalls that what was spoken about was the positions of the CEOs of the health boards. That is the line Mr. Travers has more or less followed, rather than following Mr. Kelly's line which was that he significantly briefed the Minister on illegal nursing home charges before that meeting.

Does the Minister accept that he was responsible for the performance of the functions of the Department of Health and Children in the period when he was Minister of that Department? The legal position on this is very clear and is set out in the Public Service Management Act 1987. Will the Minister give a "Yes" or "No" answer to whether he was responsible for the performance of the functions of the Department of Health and Children at that time? Is the Minister satisfied that during his tenure in the Department of Health and Children he had systems in place which enabled the Department to meet its responsibilities and enabled him to meet his responsibilities as Minister in that Department during that period? The ministerial advisers have a special role to play in this matter. The Public Service Management Act sets out very clearly the role of the Minister's advisers and the fact that they are accountable for the performance of their functions to the Minister who appoints them. We know two advisers attended the MAC meeting on 16 December 2003 and that they were furnished with exactly the same substantive briefing material on the illegal nursing home charges, as were all the participants at that meeting. Will the Minister state whether either of his advisers drew the matter to his attention following the meeting on 16 December 2003? If not, were they not performing their function? What was their role?

Mr. Kelly made it quite clear that he felt the advisers would make the Minister aware of this issue subsequent to the meeting. The Minister of State, Deputy Callely, made it quite clear yesterday that he did not feel there was any need to inform the Minister given that the Minister's advisers were at the MAC meeting and because he believed it was not his responsibility.

I will deal with the MAC meeting first. Prior to the MAC meeting, there was interaction between Department officials and the South Eastern Health Board for almost a nine month period, that is, between March and December. Mr. Travers states clearly in page 73 of his report that he finds it very difficult to understand why no adequate brief appears to have been prepared for me in advance of the meeting by people who would have had knowledge that there was an issue to be considered regarding the legal advice the South Eastern Health Board had received. The report states the meeting would have provided an ideal opportunity for the presentation to the Minister of a fundamental analysis of the underlying issues in advance of the meeting. This is a very valid point because it would be extremely odd had a MAC-CEO meeting, with Ministers in attendance, become the actual vehicle for advising a Minister on an issue of significant legal and political importance. It just does not stack up.

I can recollect no other issue that has ever been treated like the one in question, either during or prior to my term in office. This is a key point. Mr. Travers is correct that there was an ideal opportunity to brief me in advance of the meeting. The opportunity was not sought and this must be questioned if the issue is the big, headline issue about which everyone is talking. One could argue that people might not have considered the preparation of a paper for me as sufficiently urgent. The issue was for brief mention only and was subject only to a short discussion at the MAC meeting, after which a decision was made to seek the advice of the Attorney General. That is the context. This was not the big-ticket item that has been flagged left, right and centre as having dominated the meeting. Clearly, the advice was of significance and the correct decision was taken. The same decision, that is, to seek the Attorney General's advice, would have been taken at the meeting had I been present while it was being made. As Mr. Travers states in his report, there was no need to wait until the MAC meeting to make the decision in question. One could argue that once the South Eastern Health Board's advices were received, the case should have been sent to the Attorney General immediately given that the decision was entirely predictable.

It stretches credibility to the limit to suggest that I somehow received a briefing on an issue with whose magnitude we are now familiar while going up a stairs a few minutes before a major meeting at which other issues were also discussed. I find it difficult to comprehend that anyone would seriously suggest that I received, a few minutes in advance of a meeting, a substantive briefing on an issue involving major retrospection and illegal charging dating back some 30 years to 1976.

What does "briefing" mean? I am clear in my own mind that I did not receive a briefing. Leaving aside the question of whom one decides to believe, one should ask oneself the objective question as to whether it is credible that one could be adequately briefed on an issue of such political significance over the course of a few minutes while going through a labyrinth of corridors and stairs on the way from the foyer of a hotel. This has no credence.

It is totally unacceptable that briefing material for a meeting such as the MAC meeting should be made available on the evening before it is held. I did not receive it on the evening before the MAC meeting. It was e-mailed to the office. I would have received it, if I received it, in the car on the way to the Gresham Hotel from Hawkins House after my having been at a meeting with the American ambassador. There was no opportunity for me to read the briefing material.

In any event — I have said this already — the clear focus of the agenda of the MAC meeting was the health reform programme, in particular the abolition of the health boards and the future careers of their chief executive officers. For some time before the meeting, the Secretary General had been in contact with the CEOs regarding their future positions. The Secretary General was somewhat anxious about this issue in terms of how it might play at the meeting but also in terms of the state of mind of the CEOs. The CEOs felt they had not received proper guarantees or indications regarding what the future held for them. Their position was quite reasonable. That was the dominant item on the agenda. It is clear from the agenda that the main issues were the health reform programme, the service plans and issues pertaining thereto. These are what dominated my mind going into the meeting. One should be very clear about that.

Subsequently, I made comments on the Hanly report and had a subsequent meeting, immediately after the preceding meeting and in the same room, with some officials from my Department and the CEO and perhaps one other official from the Mid-Western Health Board to discuss the composition of the group that was to implement the Hanly proposals in the mid-west region. This was because the Mid-Western Health Board had formed its own view on the composition of the group. We had some issues regarding this and discussed them immediately after the first meeting.

It is important to point out that the meeting on 10 March 2004 was not flagged in advance. It was not diaried specifically and there were no papers, files or records regarding the decision on the issue in question. There was a meeting scheduled for 9.30 a.m. and my diary is clear regarding the day. There were meetings, hour on hour, from approximately 9 a.m. to approximately 7.30 p.m. or 8 p.m. that evening. There is a written note scheduling a meeting with the Secretary General but it does not state its purpose. Mr. Kelly stated I signed off on the business plan. While I did sign off on the business plan on that date — apparently it was at that particular meeting — I do not recall any discussion at that meeting on the charges imposed on long-stay patients. I do not believe there was such a discussion.

An issue arose about the file not having been sent to the Attorney General or going missing somewhere, yet a conversation was supposed to have been held with me about this very same issue after it was alleged that the file went missing. I find that a bit odd. It did not register in anyone's mind why the file had not been sent to the Attorney General and that there were no legal advices being sought, yet I was supposed to have been told on 10 March that legislation might be required if the Attorney General formed a particular opinion. That does not quite stack up either. I do not want people to have to adjudicate between individuals. However, one would genuinely think that if this issue had been deemed substantive legally and politically, there would have been some presentation to a Minister thereon and that some decision would have been recorded. No such decision was recorded.

As Mr. Travers points out regarding the issue of eligibility and this issue, the priority seems to be relatively low in terms of the business plan. There is no reference in the business plan to this issue being sent to the Attorney General for advice or clarification thereon.

The Public Service Management Act lists responsibilities pertaining to a number of people within the realm of public management, including Ministers, the Secretary General, related staff and advisers. I have responsibilities under the Act. The Secretary General has specific responsibilities under the Act in terms of making a variety of arrangements to ensure that business be done. Equally, advisers have an obligation under the Act and this is laid out quite clearly. Broadly speaking, it promotes Government policy and ensures that this is implemented, promoted and developed, particularly in the Department where the special advisers are serving. Their job is to monitor, facilitate and secure the achievement of Government objectives that relate to the Department.

The special advisers worked extremely hard and above and beyond the call of duty. I would hate any insinuation that they are somehow inferior because they are political appointees. Like everyone else in the Department of Health and Children, including officials, they work long hours. Working as an adviser in the Department of Health and Children was not the best job but they spent endless hours meeting delegations and liaising with non-governmental organisations. They were also involved in a range of issues pertaining to industrial relations and hospitals. I have no hesitation in saying that I was well served by special advisers who gave dedicated public service.

There is a difference between the executive, namely, the Ministers and their advisers, and the administration, namely, the civil servants in the Department of Health and Children. We want to see who is responsible in this instance. Did the Minister ever read the brief?

No. In the last couple of weeks after all of this I got a copy.

Was that the only time he read it?

Did the advisers ever read the brief or feel there was anything in it?

They will appear before the committee next week but it is my understanding that they did not.

The Minister of State, Deputy Tim O'Malley, and Mr. Kelly felt the brief was of huge significance.

If the Secretary General felt it was of huge significance, I should have got a paper in advance of the meeting. That is the point.

Did the Minister feel it was significant when he eventually read it?

This is subjective commentary but it covers more than long-stay charges. As the report states, it mentions varying legal opinions but 1976 does not jump out.

When the Minister read it did he feel it was a significant summary?

It is a significant legal opinion. Someone, I do not know if it was the Attorney General, subsequently said that one need only look at the names of the barristers who signed it to see it was work that needed to be processed. It is important to point out that legal opinion comes into the Department on a regular basis on a range of issues but I cannot act on legal opinions. Such opinions, in themselves, do not constitute advice. In the context of the committee's deliberations, people have sometimes equated legal opinion that comes into the Department from external sources with legal advice to the Minister. That is not the case. Authoritative advice from the Attorney General must be sought on a legal opinion. It is only when the Attorney General decides on an issue that Ministers act.

This highlights the fact that matters would have been different if the Minister had read it sometime in December or January.

Unfortunately, Mr. Michael Kelly is quite adamant that he mentioned the issue of nursing home charges at the 10 December meeting but the Minister is quite clear——

The meeting on 10 March.

We are discussing the follow-up meeting.

I have given the reasons for that already. If it was raised on 10 March, why was there no follow up? The minutes of the MAC-CEO meeting that took place two weeks later, which Ministers did not attend, record that it had gone to the Attorney General for legal advice. However, there is some talk of the file not being sent and going missing.

The file has gone missing, we do not know where it is.

It was never mentioned on 10 March.

Is the Minister stating that he is responsible for the performance and functions of his Department and that this was his responsibility?

My responsibility is as laid out in the Public Service Management Act.

Therefore, he was responsible. Does the Minister believe that the systems he put in place had some bearing on what happened, perhaps in terms of the way the memo circulated in March 2000 was used?

When I entered the Department of Health and Children, we embarked, towards the end of 2000, on an ambitious strategic approach to health issues and we initiated, in conjunction with the Secretary General, the concept of a new health strategy. That strategy contained a clear mandate to change the structures in the health service because I was not happy with them. A total of 55 agencies were involved in the delivery of services of one sort or another. As it was much too complex, we set in train a process that would lead to a fundamental restructuring of the health service to ensure a better delivery of service. This, in turn, would lead to a restructuring of the Department of Health and Children in terms of its becoming more strategic.

The Secretary General, in the context of the Public Service Management Act, has particular responsibilities in terms of systems within which are clearly stated in the Act.

Should any Minister bear responsibility for this issue?

Ministers can only bear responsibility for issues in respect of which they are properly and adequately briefed and where they have knowledge of something. If they do not take action, then they bear responsibility. However, they cannot be held responsible for something of which they were unaware.

The Minister was aware of the position.

I have just said I was not.

There is evidence that he was aware.

I would fundamentally dispute that. I have laid it on the record of the committee and I again ask if the Deputy is seriously suggesting that walking from a foyer up the stairs of a hotel constitutes a briefing on an issue of this significance. No objective person would suggest that it does.

To use the Minister's argument, that was the same briefing he received in respect of the CEOs, the mood at the meeting and the fact that they were only concerned about their futures.

No. There were regular discussions on the health reform programme between the Secretary General, advisers, officials and me. There was an elaborate structure put in place for the health reform programme, as the Secretary General has outlined, and we would have had regular meetings about issues pertaining to it. The Secretary General and I spent the month of July travelling to every health board in the country selling the new health reform programme and explaining what it entailed. There is no comparison.

I cannot think of any other issue that was treated in a similar manner in the Department, either during my time as Minister or in the past. In my opening remarks I mentioned the reviews that have taken place since 1976. None of them led to any legislative action and the same pattern continued until the present.

A total of 14 other people want to contribute. We have used one hour and there are two and a half hours remaining.

Yesterday we heard a presentation from Mr. Michael Kelly, a man who has clearly suffered a great deal as a consequence of all this. He came before the committee and, almost uniquely, shouldered responsibility. Does the Minister not feel any sense of shame at the fact that he is blaming everyone but himself?

Will the Minister revise the statement he made to Mr. Travers — I refer to that contained on page 54 of the report — which is patently untrue? The Minister is quoted, in respect of eligibility, as stating:

It is stressed in every significant statement of health policy for at least twenty years. However, this is very different from discussing the specific point that a charge has been illegally levied since 1976 and that action was required to regularise the situation. The fact is that this was not drawn to my attention either formally or informally at any time.

That is not true. This matter was brought to his attention. Would he like to reconsider what he said?

Will the Deputy elaborate?

I do not need to. I have asked my questions. If the Minister wishes, however, I will refresh his memory which seems to be flawed. Mr. Travers described the legal advice from the South Eastern Health Board which was documented in the briefing the Minister received prior to the MAC meeting as a substantive legal advice about the illegality of charges. The finding of that legal advice was that there was significant evidence to support a need for legislation.

The Minister received that briefing document. Does he not accept that it is extraordinary for a Minister to express as a virtue the fact that he did not read his brief? Maybe if he had spent ten minutes less with the American ambassador he might have had a chance to read the brief. He was briefed. He was given in writing the legal advice to the South Eastern Health Board which was substantive, even in the view of Mr. Travers. Subsequently, Mr. Kelly twice advised him informally. Would the Minister like to reconsider his statement?

Just because Deputy McManus makes a ringing statement does not mean it is true. I am a bit fed up of her and others for the past two months rattling off the phrase "he must have known" because they believe it to be so.

Is that because we believe——

That is untrue.

Is that because we know?

I have had enough of it. The Deputy's statement is based on nothing and has no substance. The legal advice was a legal opinion in the first instance. The Deputy is again making the same deliberate misrepresentation. The South Eastern Health Board received a legal opinion. External opinion coming into a Department or a Minister is not legal advice to a Minister; it is legal opinion. When it goes to the Attorney General who considers it and returns it to the Minister it becomes legal advice to the Minister. I did not read it. I said I did not read it. I could not have been briefed if I did not read it. A MAC meeting would be a very odd vehicle for informing a Minister and it is extraordinary to suggest it be utilised for this purpose.

As Mr. Travers says, given this was in the Department for nine months, and with the South Eastern Health Board, why, before that meeting, did someone not suggest this was an issue of some significance, and prepare a paper for the Minister outlining the historic issues, analysing it and presenting options and recommendations? That did not happen. That is what Mr. Travers states. That is his substantive point about the MAC meeting. If the Deputy wishes to cite the Travers report she should cite the substantive points he makes on this issue. That is what he states.

I accept, and accepted in my response to Deputy Twomey, that the opinion is of significance. I am not arguing that point. Receiving it the night before by e-mail in Dublin when I was not there, and getting it on the way into a meeting is not satisfactory. Mr. Travers describes that as poor administration in the Department.

I can understand why it happens, people are under great pressure and there are many other activities in train. It is not adequate, particularly if the issue is a question of the significance that people have attributed to the document in hindsight. I will not alter my statement to Mr. Travers.

I have not blamed anybody. An independent report was carried out by a public servant of long standing. The report is written by Mr. Travers. I did not write it. I did not draw the conclusions he drew. I co-operated with him and answered whatever questions he asked me. I worked very well with the former Secretary General in the Department of Health and Children. We had a good relationship. We achieved a great deal within the Department. Some may argue differently. I am not in any shape or form——

May I ask the Minister some other questions?

Certainly.

No one would argue that the Minister received the briefing document very late but that is not the issue. The issue is not when the Minister read it but the fact that he did not read it at all.

The Secretary General gave the Minister a briefing document which no doubt he presumed the Minister would read. The Minister had two advisers at the meeting and two Ministers of State sat in for the entire meeting. One Minister of State made it clear to us, and to Mr. Travers, that this had huge financial, political and legal implications. He read and understood it.

The other Minister of State at least got the message at the meeting that this was important enough to brief the Minister and the Taoiseach. He did not brief the Minister because he assumed the Minister's advisers would know how important it was. Among his duties the Minister must be aware of problems and not just wait for them to come to him. That is why he has such an apparatus of staff around him to make sure he is aware of problems and deals with them. The Minister did not read the briefing document. He should have read it and that is a responsibility he should bear here. Does he not accept that?

I do not accept the Deputy's contention. I have made it very clear that in my view I was not in a position to read it.

What does the Minister mean by that?

Mr. Travers has described it——

The Minister should forget about Mr. Travers.

That is exactly what the Deputy wants me to do.

I am asking the Minister.

I am answering.

Why was the Minister not in a position to read it?

The Deputy's remark that I should "forget about Mr. Travers" illustrates much about her approach to this issue. That has been her consistent line from the beginning.

The Minister should not lean on Mr. Travers. Why was it not possible for him to read the briefing——

I have just told the Deputy.

Why could he not read it even after the meeting?

It was not possible because I went straight into another meeting. I do not keep files after a meeting.

The Minister is always in a rush.

That is not the way business is done in a Department. There is no denying that given this was hanging around for nine months, a proper paper should have been presented to me in advance of the MAC meeting in December. That is a very reasonable position to adopt.

Why would anybody think, had such a document been presented, the Minister would read it when he did not read the documents he was given?

A range of issues came before me in the manner I have so described. Senior officials presented many major policy issues in the form of documents. Normally, for any issue that merited attention or decisions several officials would come in to brief the Minister. There would be a briefing paper on the issue. This would include analysis, options and recommendations.

Eligibility and entitlement was a major issue. The Minister included it in his health strategy as others had done. What did he do about it? Did he meet the Ombudsman? Did he sit down with the Secretary General to discuss all aspects of the issue because it was part of the health strategy? What actual work did the Minister do on that issue?

The Secretary General and I discussed the issue of eligibility.

I am referring to the period after 2001, after the introduction of the scheme for people aged over 70.

It was not connected with that scheme. I refer to eligibility in general.

Matters went pear-shaped after 2001——

I will come back to that issue. The Deputy asked first about eligibility.

I apologise, I should have finished my question. After 2001 the landscape changed. Mr. Kelly confirmed that yesterday. The Minister abolished the discretion of the chief executive officers of the health boards regarding medical cards. That entailed either providing stand-alone legislation or including a provision in another Bill. Once that moment passed what work did the Minister do in regard to eligibility and entitlement to deal with this issue?

The Deputy is incorrect. The Secretary General, Mr. Kelly, said yesterday that it registered on his radar as a significant issue only in 2003. He said that in response to some questions on its significance. It did not surface in the context of the extension of medical cards to people aged over 70.

Did the Minister not ask about it?

I did not know anything about the position in 1976. The Deputy mentioned again that this initiative took the discretion away from the chief executive officers of the health boards. There was no discretion. There was no legal validity for any discretion for chief executive officers since 1976. I did not know that in 2001. Every Deputy knew that charges were being levied but people did not realise it was illegal. In 2001 a simple section was added to the Health (Miscellaneous Provisions) Act to give medical cards to those over 70 years of age. There was no appreciation that this would have an impact, one way or the other. As Mr. Travers pointed out, this did not add anything to the situation. However, it acted as a catalyst for surfacing this issue once and for all and it was the catalyst for the South Eastern Health Board's legal opinion arriving on the scene.

That is what I am asking. That is the point. When it became crystal clear——

It did not become crystal clear to me at the time. It did not become crystal clear to the Secretary General either, as he said yesterday.

It did not. Not in 2001. He said yesterday it registered significantly——

The Minister is, therefore, saying that even though the law had been changed in 2001 and the South Eastern Health Board produced the legal advice in 2003, nothing he did in regard to eligibility entitlement informed him about this issue.

No. I refer to eligibility. A report of the consultative forum subgroup on eligibility, which I can circulate to the committee, led to the findings in the health strategy. It comprised a range of people. It is interesting because it was chaired by the assistant secretary of the Department. It deals with the eligibility entitlement issue and the Department's understanding at the time. The group noted that a common feature of many health systems internationally is long-stay care is seen as requiring specific arrangements based on different criteria and funding measures. The report does not indicate that something is wrong in terms of illegality. People were not of a mindset that something was fundamentally wrong. It did not surface in this report. What we decided in the health strategy——

That is not true. The Ombudsman did. Did the Minister meet him?

We did but then the Department got legal opinion on the Ombudsman's conclusions and the advice from the Attorney General disagreed with his opinion on in-patient services to every elderly person in an institution.

When Deputy McDowell was Attorney General.

It is not an issue of personalities.

I am asking a question.

It might have been solicited from a certain senior counsel.

This will cost the State a significant amount and the longer it has gone on, particularly since 2001, the more costly it has become. Who is responsible?

I accept the conclusion of the Travers report that it was a long-term systemic corporate failure.

Who is responsible?

I have answered.

Is the Minister saying he is responsible?

No. I agree with the conclusions of the Travers report, about which the committee is well aware going back to 1976.

If so, the Minister is saying he is responsible because under the Public Service Management Act 1997, he is responsible.

The Travers report makes a clear differentiation in terms of where he lays responsibility. He has made a determination on this and he gives the reasons, which relate to the principles, people's worries about funding and so on. He outlines ten reasons towards the end of the report. I accept that and I do not argue with his fundamental conclusions.

I am still trying to get an answer. I asked the Minister who is responsible. Is he saying that, as Minister, he does not bear any responsibility for this?

I am, I do not.

It has been a fairly bullish performance so far by the Minister. He began with a strong statement that unfounded rumours were being spread. Which members of the committee are spreading unfounded rumours?

I will leave it to the Deputy's imagination.

The Minister will tell me. He made a statement. I want him to tell me.

I have and I am standing over it.

Are the members present?

Who are they?

They are staring at me.

The Minister should name them.

I have heard some of them. I even heard Deputy Twomey last night on the "Tonight with Vincent Browne" radio programme.

What were the rumours? Who spread them? The Minister has made a statement, which he should substantiate because I take exception to that.

That is fine. I have taken exception to much of what has been said and I have waited for this opportunity.

The Minister should back up his statement.

I said what I said.

I ask the Minister not to make such statements.

I will not give credence to some of the more outlandish suggestions made in the media. I have heard suggestions all over the House about files and so on. The Deputy knows what I am talking about.

I am being hectored by the Minister. He used the word "credence", which he also used when he referred to Mr. Michael Kelly's briefing of him. He dismissed the idea that Mr. Kelly could have briefed him. However, Mr. Kelly informed the committee yesterday that it was normal practice for him to brief the Minister in this way because he was an extremely busy Minister who rushed from here to there. The fact that the Minister did not read the brief confirms that he was extremely busy and that he was in some ways like a headless chicken going from here to there.

He was a busy Minister, in fairness.

The Chairman is protecting him and he should withdraw that statement.

I do not need to protect the Minister. He is well able to look after himself. That was not the implication.

Was it normal practice for Mr. Kelly to brief the Minister as he was going from meeting to meeting?

No, not from meeting to meeting. We had many meetings of some duration in the Department in my office. We got on very well and it is important to set the context for the former Secretary General. I am convinced that this issue was not on the radar screen with the degree of urgency and intensity that has subsequently been applied to it. The Deputy asks what was the formal briefing. I refer to the Medical Defence Union and the indemnity issue. It is interesting because it contrasts with the way this issue was dealt with. We had many meetings in my office on that involving the Secretary General and a number of key officials who were dealing with that file. We met with intensity on that issue because we felt the Exchequer was exposed to a charge of up to €400 million and potentially €800 million if we took the wrong decisions. That is why I took the decision, much to the chagrin of the IHCA and the IMO, to press ahead with the implementation of the Medical Defence Union indemnity because if I did not, I felt I would have questions to answer before the Comptroller and Auditor General. We had meetings lasting 40 minutes or an hour on a regular basis in my office. There are many other examples. Meetings were held on issues relating to service plans and Estimates. I was never briefed on an Estimates issue but the process rolled on from October to the end of November.

Does the Minister agree with the assessment of the Minister of State, Deputy Tim O'Malley, that the briefing from the South Eastern Health Board would have significant legal, operational, financial and political implications?

I accept that.

Does he accept the two junior Ministers were briefed on this issue?

Not fully in terms of the enormity of it.

However, the Minister accepts the Minister of State, Deputy Tim O'Malley, was briefed. He read the brief; the Minister did not.

Deputy Tim O'Malley said if the Attorney General bears out the legal opinion of the South Eastern Health Board, it is clearly of legal and political significance. That does not mean that at the time he had the full vista of what the issue entailed in front of him. I do not think he had and he has not even suggested he had.

He read the briefing note while the Minister did not.

Had the Minister read the briefing note, this would have been an entirely different story. Is that not correct?

The Travers conclusions would have been entirely different had the Minister read the document.

If I had read the document and if I had been at the meeting, the decision would have been the same, which was to send it to the Attorney General for his advice.

The Minister is, therefore, saying that it would have been immaterial whether he had read the briefing document because it would not have changed anything and it would not have had implications for his job.

The decision taken was the correct one. I cannot see how I would have differed from that decision, that is, send it to the Attorney General. As I said earlier, many legal opinions are received. We do not accept every legal opinion. The vintners sent in many legal opinions on issues but we did not roll over when that happened. We sought advice from the Attorney General.

We appear to be focusing on the briefing document. Is the Minister saying to the committee that, even if he had read the document, it would not have made a difference?

It could have, who can say? The point is that the decision would have been the same. The CEO of the South Eastern Health Board made the same point. He made the point that his main objective in bringing it the attention of the MAC-CEO meeting was to get it to the Attorney General.

There is a conflict of evidence on the missing file. Is there an inner office and an outer office?

Did anyone in the outer office see the file?

"No" is the answer according to Mr. Travers.

It is not contained in the Travers report, but we were told yesterday by Mr. Kelly that written evidence was given by a civil servant who said she saw the document.

The Travers report covers the evidence of two civil servants on the issue. One has a memory of the file being in the outer office while the other has no memory of that. I do not think it is fair for anyone to draw a distinction when apportioning a greater degree of integrity to one official over another.

That is fair enough.

That is an important point.

The Minister said this goes back sometime to the 1994 health strategy and afterwards. Given his knowledge at the time, did he believe that, because there was a problem with the charges system, the matter would have to be reviewed? What was the Minister's belief at the time?

The Government strategy refers to long-stay care in general. The clear issue we must all face collectively is private nursing home charges, the inequities throughout the country in how people access private nursing homes and the nursing home subventions. The issue of long-stay charges in public beds was not a burning issue in the public domain. I do not think any Deputy could say this was the case. However, a constant issue in all our clinics and advice centres was the question of nursing homes, namely, people having to pay €500, €600, €700 or €800 to meet the cost of a nursing home. I believed there was a need to deal with that issue. I hoped the eligibility committee and our strategy would try to come up with an overall view. Eventually, it would have to go to Government and we would have to deal with the issue. That is my sense of what was in my mind on nursing homes. There continues to be a difficulty in this regard for many people. Different parts of the country had different arrangements, which gave rise to geographic inequities.

The Minister stated it would not be normal practice for Mr. Kelly to refer to document to the Attorney General, yet there was third party evidence which collaborates what Mr. Kelly said, that is, that it was referred to the Minister's office. He also stated that he had a good five year relationship with the Minister. Does the Minister think the folder would have ended up in his office if it had not been misplaced? Mr. Kelly said it might have been accidentally misplaced.

The whole issue about the file is a bit of a misnomer, because there were other copies of the file in the Department. We heard yesterday that there was a hard disc. Files can go missing, there can be accidents, but there is a back-up system.

That it not the issue.

It is an important issue because the file has become centre stage. Given that a number of people were involved in drawing up the preparatory document, I do not understand why a copy was not made available. There is a hand-written note on the front page of the document. It reads that a legal adviser is satisfied that we go to the Attorney General directly for advice on this issue. This has not been highlighted, even though it is on the document. It indicates that it would go directly to the Attorney General. There is not a formal record of the file going from the secretariat to my office. There is no formal record of the file being received in my private office. To be fair to the Secretary General, he said that he does not have a recollection of giving it to me but, to be very accurate, he said he feels he must have given it to me. There is this idea that everything was dependent on one copy of a file. Yesterday, the Secretary General elaborated on this when he said files go missing.

Mr. Kelly said yesterday that a female civil servant brought the folder from his office to the outer office.

(Interruptions).

He did not say that. It is in the Travers report.

Mr. Kelly said that the female civil servant brought the folder to the outer office, handed it to a male civil servant in the outer office and he inquired what was in the folder. Earlier, I asked if the file had been left on an empty desk but Mr. Kelly is categoric that officials were involved in this, it was handed from one person to another and the person getting it asked what was in it. As he was told what was in it, he was aware of it, but it disappeared afterwards.

The Deputy can check the record to examine what the Secretary General said. I understand he did not say a person brought it from his office to my office. He said that one official recognised the file in the outer office but the other official has no recollection of that happening. There is a conflict of evidence in that matter.

Mr. Kelly is the man who lost his head over all of this. He said he sent the file. Would it not be possible that the file was misplaced?

Misplaced by whom?

In the Minister's office.

The staff spoke to Mr. Travers about this and he recorded their views. Page 47 of the report reads:

Neither the then Minister for Health and Children, his Private Secretary, his Assistant Private Secretary or the then Minister's two Special Advisers recall any submission on the matters outlined in the previous paragraphs.

The previous paragraphs relates to the file. There is a conflict in terms of that issue which I cannot resolve. I know I neither received nor read the file.

Mr. Kelly said that while the report is strong in probing the actions of officials by reference mainly to the presence or absence of formal documentation, it appears to apply much less rigour in analysing political action and inaction over the years. Does the Minister believe that the buck stops with him rather than with Mr. Kelly, and Mr. Kelly has paid a price? The Minister would have to propose the legislation. Does he think that the fact that the late Mr. Boland tried to bring forward legislation puts the spotlight on him as the Minister and as someone who would have known what was going on, to also have been able to do so?

I was not aware of the situation in 1987 during the late Mr. Boland's term of office. I was not around at the time.

I am aware of that.

I have read the section in the Travers report relating to it.

Surely it is the Minister who would propose the legislation that would be brought forward.

One can only propose it on receipt of the advice from the Attorney General. Ministers can initiate legislation on a variety of issues, but on other occasions the Department will come and say we need legislation on the following items. That is the way it works.

Surely there is a responsibility, and Mr. Kelly paid the ultimate price if the responsibility lies on him. This is something that had been going on in the Department for a very long time. If the former Minister, John Boland, knew about it, how come the Minister, Deputy Martin, did not also know about it?

Mr. Travers deals with that. He cannot trace what happened subsequently post 1987. There was another review in 1991-92, for example, specifically on long-stay charges. That was not acted upon.

Is the Minister saying that he was not briefed at all or is he saying he was briefed but it was an inadequate briefing?

I am saying I was not briefed.

Is the Minister saying he was not briefed at all?

Was the matter mentioned to the Minister going up the stairs to the meeting in the Gresham Hotel?

No, it was not.

The Minister is saying it was not mentioned at all.

Therefore, the Minister is saying that Mr. Kelly is wrong on that.

Mr Kelly has a view on it and I have a clear view on it. What I have invited the committee to consider is whether people genuinely believe that from the foyer to the room in the Gresham represents, or could even potentially represent, an opportunity to brief a Minister on this. It could not.

It is all in written evidence.

The point I am making is that such does not in any way constitute a credible briefing. The point Mr. Travers makes is that before that meeting there should have been a briefing. I understand people were under pressure and so on, but if the issue is of the significance that it is, and if people knew that at the time, it should have been presented to me in a proper way prior to the MAC meeting. I have never come across a situation where a MAC meeting becomes the vehicle for advising a Minister on something.

I take the Minister's point that it should have been presented to him in an adequate manner, but is the Minister saying that it was not even presented to him in an inadequate manner?

I am saying I did not get any briefing on the issue going up the stairs in the Gresham Hotel.

The Minister is saying he did not get what he would call a briefing, but did he get a mention of it?

No, I did not.

Mr. Travers says the MAC committee was dysfunctional. Does the Minister agree?

I have my own views. As the Secretary General said yesterday, he inherited a fairly difficult situation in the Department because of previous events that happened between personalities and resulting litigation and civil actions. It was a difficult position in the first two years or so of his time as Secretary General and he shared it with me. I must admit, and I said this to Mr. Travers, that Mr. Kelly took exceptional time and gave much of his energies to healing that situation or to creating structures to try and create a new dispensation at MAC level. To a certain extent he succeeded in that.

I worked well with the MAC. I could equally argue, and there is no argument about this, that the Department of Health and Children wanted to restructure itself. It brought in Hay consultants to look at enhancing the way the Department could perform, particularly in terms of strategic and policy legislative functions where it felt there were inadequacies etc.

The briefing material for that meeting came to the Minister the previous evening. Is this a regular occurrence?

Sometimes briefings come too late. I often asked for briefings to come earlier. That said, the response I would often receive is that staff were under enormous pressures. Sometimes that was the case. In situations such as this and with issues such as this one requires much earlier briefings.

Can we presume that if a briefing comes the evening before it will not be read, no matter how urgent?

A number of briefing documents might come in respect of a number of items on the agenda. Basically, there is a better chance of a briefing being read if it comes earlier rather than later. If it comes on the eve of a meeting, or in my case getting it on the way into the car or something like five minutes before one goes into a meeting, it clearly cannot be read.

Does the Minister think he holds any responsibility in this?

I genuinely do not.

For the next part of this session a number of Members who are not on this committee have indicated they wish to speak. However, I will give priority to those on the committee, particularly in view of the fact that yesterday I could not give them time. Those who have indicated and who are present are Deputy Neville and Senators Henry, Feeney and Glynn. We will spend 20 minutes with them and then take a break for 15 minutes.

Mr. Travers found that the Minister's special advisers showed a lack of concern or interest in the issue of the charges. He also said, they "might have been expected to more actively probe and analyse the underlying issues involved". If the failure to deal with this issue in the Department represents a serious failure of public administration, does the Minister agree that the failure of his advisers to brief him on the issue and to follow up on it also represents a significant failure?

I do not because first, Mr. Travers makes it clear, and it is clear in the Public Service Management Act, that special advisers are not duplicates of civil servants or are not in the chain of command in terms of issues of this kind. That is very clear. I understand the special advisers will come to the committee and make their points in this regard. Second, they certainly did not have any sense of this being a huge issue at that particular time. Their view is that it went for a decision, that the correct decision was taken and it went to the Attorney General's office. It can take some time for advice to come back from the Attorney General's office.

Can it take ten months?

It can. The chief executive officer of the South Eastern Health Board said it took a year for it to get the advice.

When the advice came ——

Some advices I have received on other issues would have taken that length.

This specific advice took three weeks.

I am not arguing with the Deputy. I am just making the point that people would have felt that the correct decision had been taken and it had been referred to the Attorney General, but had not yet come back. I said at my outgoing MAC meeting that I do not think it is fair to expect the MAC members to specialise on every issue. They are not just one section of the Department. They cover a range of issues across all areas of the Department.

Does the Minister not see that as a failure?

I will return to the period prior to the MAC meeting of 16 December 2003. Does the Minister recall the Ombudsman's report of 2001? Did the Minister read the article in the Sunday Independent in January 2001 which suggested that people with medical cards were entitled to free long-term care? The Ombudsman also made a presentation to the Joint Oireachtas Committee on Health and Children where the issue of charging over-70s for long-term care was legally questioned. Deputy Martin answered 429 parliamentary questions in 2003 and 1,021 ministerial representations which dealt with the issue of elderly care. As a result of all these issues, was a red flag raised or was the Minister not warned by his political antennae that long-term charges were a serious issue? He was subsumed in the issue over that period.

It is interesting that the Deputy talks about parliamentary questions and the Ombudsman. At the time I would not have been party to the meeting this committee had with the Ombudsman. However, I think an account of it appeared in some periodical recently and I read two weeks ago what transpired at that particular meeting. I got a copy. I think the Ombudsman made it clear towards the end that she would have to do a separate report on the issue before she would decide a definitive position. At the time of the Ombudsman's report, the big emphasis was on means testing, on pocket money and the ultra vires regulations in place for approximately five or six years prior to that. However, the issue on the question that elderly people, irrespective of whether they were in a private nursing home were entitled to free care was sent for legal advice at that time. The advice came back through my officials to the effect that it disagreed with the Ombudsman’s conclusions on that issue. That then seems to have informed all the written replies to questions pertaining.

I refer to the famous issue about eligibility and entitlement. I would not deliberately mislead Dáil Éireann and as a Minister I am very conscious of not doing so. I stand to be corrected but in my four years and nine months I am not overly conscious of having had to answer significant priority questions on this matter for oral answer in the House. They all tended to be submitted as written questions.

I refer to one question on 5 May——

There were 3,000 in two years.

I will have to check the record. There are almost 300 or 400 questions a day to the Minister for Health and Children, especially on Tuesdays. There could be 500 on a Tuesday following a bank holiday. This is the sort of Department it is.

Did the Minister read them?

The advisers went through them. Some of them were pro forma, to go back to the health boards on individual cases. The priority questions are considered to be the opportunity for interrogating the Minister on an issue. I do not have any recollection of any priority questions on the matter.

The Travers report and the Supreme Court judgments both state unequivocally that the 2001 Act granting medical cards to the over 70s ended any doubt about the legality of the charges. The Travers report indicated the Department of Health and Children was not involved in the development of this proposal before the decision to introduce was announced in the budget. Will the Minister explain to the committee how the Government could have made a decision of such magnitude when the Department most affected by the implications of the decision was neither consulted nor involved in the deliberations? Does he accept if the Department had been given an opportunity to comment on the proposals, it might have highlighted the implications of the decision on the charging of the elderly? Does he believe this decision received the analytical input it deserved and does he now regret the lack of rigour in examining the implications of the decision to give medical cards to the over 70s?

I wish to clarify the point. The Travers report describes the extension of the medical cards as a catalyst for surfacing the issue. It states that what it achieved was the surfacing of this issue. Most people did not realise something illegal had been going on since 1976. I do not think Members of the Oireachtas believed that and many of them were also members of health boards.

In terms of the decision, it is not unusual that the officials were not involved in the macro-political decision to extend medical cards to the over 70s. Politicians are elected to make decisions about eligibility issues. Another good decision of this type was called free education, made by Donogh O'Malley.

(Interruptions).

The Minister has offended some people. I ask him to continue.

I also wish to point out that the proposal to extend medical cards to the over 70s was voted unanimously in the House by all sides. I will concede the point——

The Opposition does not have the weight of the Department to support them in their decision. They have to accept what Ministers say. The Opposition did not have the facility to be fully briefed by the Department on the implications.

At the time Deputy Neville's party wanted me to give medical cards at the lower age of 65.

That is still the case.

I accept the Deputy's point and it is fair comment that officials received that policy then.

I asked departmental officials whether we should introduce a medical card for the under-fives, for example. The traditional perspective in the Department on this issue was not to change the way medical cards were allocated, neither to opt for age cohorts nor change the existing eligibility threshold system. This was further thrashed out in the context of the debate and the formulation of policy in the 2001 health strategy. We arrived at a compromise between the two positions where the thresholds were increased but with higher thresholds for children — if I recollect correctly — for children with special needs. Members of the House offered various policy positions. Some were of the view that every child under five should be given a medical card irrespective of income. The children's allowance is paid irrespective of income, as is free travel and these were policy decisions. Some preliminary evidence suggests that the extension of medical cards to the over 70s is having a beneficial impact on the health of elderly people because they are visiting their GPs more often.

In 2001 the Minister stated in the Dáil that with regard to the extension of medical cards to the over 70s his Department was examining the implications with a view to ensuring equity in the application of charges in respect of long stay or extended care. Did the Minister consider revisiting that decision at some stage between 2001 and 2003? He would have been aware then that the implications were being examined yet it took the tabling of parliamentary questions from Deputy Perry to resurrect this issue.

A parliamentary question was tabled in May 2004. Given all that has happened about the meetings that were supposed to have taken place and the business plan meeting, that question did not trigger any response. It did not cause anyone to think the Attorney General should be involved.

Does the Minister accept that in 2001 he was aware his Department was examining the implications? He said so.

Subsequently it has emerged the Department considered it but did not surface anything to me or to the Secretary General. Apparently it was examining a memorandum but I did not realise that at the time.

Page 89 of the Travers report states:

There is no documentation that I have seen in the records made available to me that indicated that the Minister was informed in any substantive way in relation to the matters prior to the circulation of papers for the MAC/CEO Group meeting of 16 December 2003.

This suggests those papers given to the Minister on the morning of 16 December, as he states, were substantive in the manner in which they informed him about these matters. This was a very crucial paper, yet the Minister did not acquaint himself by reading that documentation, to inform himself about the situation, even though he was not present at the meeting. This document was in the Minister's possession.

Mr. Travers makes it clear what he means by a substantive briefing. The document to which the Deputy refers contains a summary of legal opinion from the South Eastern Health Board and that was its status at that time. It is only when it comes back from the Attorney General that it is regarded as formal advice to the Minister. What Mr. Travers regards as a substantive briefing is a presentation or a paper which analyses the issues, lists various options that can be pursued and makes recommendations. He said this to me in the course of my interview with him. His perspective is that this is standard practice in the public service but it did not happen. He suggests it should have happened prior to that meeting.

The Travers report states the Minister was not informed in any substantive way prior to the circulation of the document. This clearly indicates to me that the Minister was advised in a substantive way at that stage.

No, it does not. He implies there is no evidence of any document being supplied prior to that. He makes the point that he regards that document as significant and then goes on to make the point that it finds it entirely understandable that I could not have read the file, given the lateness of its arrival.

He calls the document "substantive".

He uses the phrase "entirely understandable and credible" that I could not have read it and that I did not read it. That is his conclusion.

I would like to respond to a comment the Minister made in the Dáil on 10 March last, namely:

Mr. Travers asked Fine Gael, just like other Opposition parties, if it wished to make a submission. Fine Gael did not even respond to him.

I have a copy of a letter that was sent by Mr. Travers to the leader of my party, Deputy Kenny, dated 21 March 2005. In the letter, Mr. Travers states that he is grateful for Deputy Kenny's quick and timely response to his request.

Perhaps the Deputy should read the letter.

Mr. Travers also says that he referred in his report to the raising of charges for long-stay care in certain institutions.

Did Mr. Travers state that he regarded the letter as a substantial submission?

No. He said——

I received a copy of the letter.

Why then did the Minister state in the Dáil that Fine Gael——

Mr. Travers stated that he received a letter, not a submission.

The Minister said that Fine Gael did not even respond.

I think the Deputy's letter referred to the Fine Gael website. Is that true?

The Minister said that Fine Gael did not respond to Mr. Travers. I have a letter from Mr. Travers thanking Deputy Kenny for his response.

It is not a huge issue. The Deputy has defended his party.

Does the Minister agree that he misled the Dáil in that instance?

I think the Minister told a lie.

I refer the Deputy to the document.

The Minister told a lie.

The Minister does not admit anything.

I have it in writing.

That is an allegation.

People make mistakes.

We must move on. We will not talk——

I have a final question about a matter that was raised yesterday. Does the Minister think it is fair that a person has lost his job on the basis of a single issue within a Department that, according to the Minister, was not seen as significant by the Minister or his officials until very late in the day? Is it right that the resignation of a person who has given years of honest and efficient service should be requested on the basis of an issue, the importance of which the Minister has been trying to talk down?

I am not talking down the importance of any issue.

The Minister said it was not seen as important within the Department at that time.

That is the perspective I put on it.

Does the Minister think it is fair that the person had to lose his job?

The Secretary General gave his view of the matter yesterday. It is a matter of great upset and sadness to me that the Secretary General felt it necessary to resign his position.

He was asked to leave his position.

He was fired.

That is fine. Having worked with the man for five years, of course I was upset and disappointed. I acknowledge the contribution he made.

What about collective responsibility?

Mr. Kelly did not say he was fired.

He was asked to resign.

He said his position was untenable.

If the Minister was told that his position was untenable——

He mentioned that he was happy that the Government had put him in another position.

His position was untenable.

I did not write the report. I was not involved in Mr. Travers's work. The report is available for all to read and its conclusions are clear. I have made my case.

It is obvious the Minister has a view——

I have given my view.

——on the fairness of——

I have given my view on it.

I thank the Minister for his attendance. If the Minister had been present when the Department's management advisory committee discussed the issue of long-stay charges for those over the age of 70 at its meeting of 16 December 2003, would the action that was taken have been any different?

No. The matter would have been referred to the Office of the Attorney General for its advice.

The Minister would have known about the matter.

I would have known about it, yes.

I wish to ask the Minister about the infamous file. Senator Browne's earlier comments were wrong. I wrote down what Mr. Kelly said yesterday. He did not claim that the female official involved in this instance did not say she had brought the file to the office. Mr. Kelly pointed out that she said saw the file in the hands of another official. That is what the lady said. I wrote down what Mr. Kelly said yesterday.

He also said that the contents were——

Nobody ever said that she brought it to an office. That was never said.

Mr. Kelly was clear that it was actually——

Fine, I will move on. Did the Minister ever see the infamous file? Some people seem to think that the Minister took the file or hid it. Did he take or hide it?

How does the Senator know what we think?

The answer to all the Senator's questions is no.

She can read our minds.

I made it clear in my opening remarks that I do not take files from Departments.

The Minister did say that.

I do not do that as a practice. While I have taken constituency files, I have never taken any file from any Department in which I have worked. I would not do so.

Would a Minister know about all the legal advice that is sought from the Office of the Attorney General?

No. A Minister would not know about it all. Much of it is routine.

Has Deputy Martin, in his capacity as Minister in various Departments, ever directly sought advice from the Office of the Attorney General?

I instructed an official to contact the Office of the Attorney General about a certain issue. I mentioned the matter during the debate on this issue in the Dáil. I sought advice about the pharmacy regulations, which were under threat in the courts. A principal officer in the Department was concerned when he received a written note from the senior counsel who was representing the Department in the High Court. He passed me the senior counsel's handwritten note as a matter of urgency.

Did the Minister seek the advice directly?

When I read the senior counsel's handwritten note, I realised it was quite serious. He said he was defending something that was ultra vires. When he said that in his opinion the regulations were ultra vires, I immediately asked the official to seek the opinion of the Office of the Attorney General.

I was under the impression that it is common practice to contact the Office of the Attorney General to obtain advice. When I asked Mr. Kelly whether he had often sought such advice, he said he had not done so. He said it was the first time he had ever sought advice. I wonder if it is a familiar pattern.

The Secretary General was correct when he said that such advice can be sought at principal officer or assistant secretary level. That is true.

Did the Minister's advisers know about the advice given to the former South Eastern Health Board? If so, did they discuss the matter with the Minister? Did they talk to him about the advice?

No, they did not talk to me about it. They did not discuss it with me.

I have wondered about a particular matter since the report was published. Other people have raised this issue in a roundabout way. What would have been the benefit of waiting to seek the advice of the Office of the Attorney General? Was there any benefit to be gained from that?

No benefit would have been gained from that by civil servants or Ministers. Many issues of seismic proportions arise in the Department of Health and Children. It is not as if one does not become used to dealing with issues of consequence. One is aware that the actions one takes will be of some consequence.

The Minister has answered my queries. Mr. Kelly said yesterday that he briefed the Minister about this matter on occasions. Did any of the senior officials in the Department try to arrange meetings in this regard with the Minister or his advisers? I know they did not do so prior to the meeting. Did they try to make such arrangements after the meeting?

No. In fairness, it has not been suggested that they did. When issues of importance are being discussed, civil servants normally do their homework in advance. They might compile a memorandum or approach the Minister to discuss the matter. We know from the Travers report that a group was formed, but the members of that group never met me. My advisers were not on that group and perhaps there was no need for them to be.

It was not a burning issue. It would have been discussed if it was a significant issue. The Minister has spoken about the significance of the medical indemnity issue and the number of meetings that took place about it. In the Minister's opinion, was the issue under discussion ever seen as being of similar significance?

It was certainly not treated with such significance during any dealings in which I was involved. I should mention, to be fair to all concerned, that a paper was prepared and the Office of the Attorney General was contacted.

From the Minister's point of view——

It was not dealt with in a way that was comparable to the way in which issues such as medical indemnity were dealt with.

It seems from chapter 4.29 of the Travers report, on page 40, that the Department had prepared a memorandum on long-stay charges. The memorandum was to be considered by the Department's management advisory committee "with a view to getting a decision on whether or not it should be submitted to Government." Did the Minister or the Secretary General know about that? The memorandum was not subsequently considered by the management advisory committee. In that context, the Travers report states:

I have been informed that this did not happen but that the officials involved in its preparation instead decided to pass it on to the section of the Department considering the wider issues of eligibility for the health services generally which the 2001Health Strategy indicated would be dealt with by the introduction of new legislation.

The report said that this did not happen as there were more pressing matters, including the health reform programme, on the Department's agenda. Did the Minister ever see that?

No. I never saw the memo and I understand from the Secretary General that he did not either. I was surprised when I read this.

Is that not strange?

It is odd. I was surprised. I reread the Travers report on that point. It seems the memo was sent on to the section dealing with the wider eligibility issues, which I can understand to a certain extent. I did not know work of that level of detail was being carried out on this specific issue.

Sitting suspended at 4.20 p.m. and resumed at 4.45 p.m.

We will resume with Deputy Devins. We wish to conclude proceedings by 5.30 p.m.

I also welcome the Minister and thank him for his help in our task, as set for us by the Dáil.

The word "briefing" has been discussed ad nauseam. I presume the Minister has received many briefings in his time in office. Will he elaborate on what precisely constitutes a briefing? Specifically, what form did the briefing, if any, he received on long-stay charges take?

A briefing would have the following components to it. There would be an analysis of the issue, background analysis, options in terms of various avenues we could pursue and recommendations. One would normally receive that in the form of a paper and then one would discuss it with officials. I did not get any briefing in respect of that specific issue.

The Minister received no such briefing,

During 2003-04, as the joint committee is well aware, many things were taking place in the area of health. Will the Minister give us a flavour of what were the main issues at that time?

To be fair to the former Secretary General, I agree with the description he provided yesterday. There was an enormous pressure on him and me. The single biggest issue, which people may not realise, was the European Presidency, which takes up an enormous amount of time because of inward visits by a range of groups involved in the area of health. We had an active and successful health Presidency on cardiology and through other events. To be fair to the Secretary General, we held regular meetings for approximately one year in advance in preparation for the European Presidency. These were attended by eight or nine officials, the Secretary General and me.

Medical indemnity was a big issue which was annoying and frustrating in the sense that it gave rise to many protracted discussions and contact with the MDU, involving much legal advice. The offices of the Chief State Solicitor and the Attorney General would have been involved on a regular basis. We then had ongoing meetings with the medical representative bodies, including the IHCA, some of which I recall went on until 9 p.m. or 9.30 p.m. Sometimes the only time we could meet the representative bodies was in the evening after all other work had been done.

The service plans and the allocations were significant pressure points because 2003 and 2004 were difficult fiscal years in the sense that there was very little development money because of the fiscal position of the country and the fiscal stance we took. There was also a clear obligation on the Secretary General and me to ensure that the health boards remained within budget. There was a management issue there. The Supplementary Estimate also ended, I think, in 2002. All of this created pressure.

The greatest single pressure was obviously the health reform programme. We were under pressure to produce the goods from commentators and others inquiring after the whereabouts of the reform programme and the Health Service Executive. There were two Health Bills in 2004. An initial Bill providing for the abolition of health boards was introduced prior to the local elections that year and this was followed by a second, larger, Bill establishing the Health Service Executive. Then there were all the various project teams which were formed and meetings with a variety of interests. There would have been regular meetings with the chairman and so on. The reform programme was, therefore, a big ticket item.

There was also the tobacco issue, although that related to two specific ring-fenced sections within the Department, namely, the community health section and the health promotion section. It was a big issue as well, which was very active for six or 12 months. A great deal was achieved.

Yesterday the former Secretary General, Mr. Kelly, stated that the long-stay charges issue, to use his words, went "off the boil". Is that the Minister's perception in light of all the other things that were happening at the time?

Yes, I can certainly understand why the former Secretary General made that point yesterday. The only issue about which I have queries and am curious is that of the two MAC meetings. It appears it was decided at the March meeting to seek advice but different terminology is used for the October meeting. Apparently, at the October MAC meeting the chief executive officers raised the issue energetically and the response was that the legal issues were being reviewed. I can understand that there were many pressures, especially the European Presidency, which required people to carry out work here and in Europe. I accept what he said in that regard.

Was I correct in my interpretation of the Minister's comment earlier to the effect that on the hard disk copy of the letter or file which is in dispute it was stated that there was no need for it to be sent to him but should go straight to the office of the Attorney General?

It is contained in the Travers report and it states that "the legal adviser is satisfied that we go to the Attorney General directly for advice on this issue".

Is it possible for the committee to obtain a copy of the file or letter?

I welcome the Minister and thank him. Given the nature of our function which is to consider the legislative and administrative implications, I wish to follow on from Senator Feeney and focus on the way in which legal advice is sought in the Department. The Minister said legal opinions come to the Department frequently and mentioned the vintners in particular. I am not sure that the opinions need to be processed.

I am not clear whether the vintners sent one in, but many people made submissions.

I am taking that as an example. People may proffer legal opinions on this, that and the other to a Department of the size and nature of the Department of Health and Children. Is there a standard practice or process followed where someone highlights an issue on which there is legal ambiguity? How is the Department alerted?

As the Secretary General pointed out yesterday, communication takes place from official to official. The Department has an ongoing relationship with people in the office of the Attorney General and sends material to it on opinions submitted, legislation and other issues to secure advice. Advice is sought from the Attorney General which would come back to the Minister if it was a policy issue, otherwise the officials would satisfy themselves in regard to it.

The Minister mentioned that everybody who wrote to the Department——

There is also a legal adviser in the Department who could——

Could it be described as a legal department?

No. There was one legal adviser in the Department. I considered that section needed to be expanded.

The committee could make such a recommendation in terms of a Department of this size and nature.

I would agree with that. The Department of Education and Science was fortunate in that it had a number of officials with legal backgrounds and legal expertise. We dealt with a considerable amount of legislation in the two and a half years when I was in that Department, which was a positive experience. I accept that the Department of Education and Science may be less complex than the Department of Health and Children.

In fairness to the Secretary General, we discussed this matter and he expanded the legislative unit but it was occupied with the Health Service Executive Bill. I would support a recommendation that the legal expertise in the legislation unit could be improved. "Improved" is the wrong word to use because one person can only do so much.

It could certainly be expanded and enhanced to deliver legislation faster.

Is it the case that the Department would not necessarily respond if a legal opinion came in from an interest group? Is it correct that the Department would not automatically have considered it necessary to get counter advice on these matters?

It would consider it necessary to do that.

Does the Deputy mean if some organisation sent in advice?

Yes, if an organisation gave a legal opinion. Would the Department follow through?

It would have no standing otherwise.

If for example in a political clinic a person were to proffer an opinion, one would not necessarily accept it as the truth. What I am trying to ascertain is if the Department would consider it necessary to satisfy itself in getting legal advice on a matter?

Yes, but there might be instances where it would have had previous experience of a legal issue and could be in a position to say something does not stand up or that it had already dealt with the matter on a previous occasion.

Would the Minister consider it acceptable for a Secretary General to know about the legal advice coming and going from a Department or would that be the responsibility of the legal section of the Department?

To be fair, there has to be delegation. One single individual cannot manage everything. In practice, there is delegation to assistant secretaries general and principal officers who are given responsibility for sections or policy areas to administer. It could not work without a delegated system. The Secretary General stated yesterday that principal officers or assistant secretaries general in their own right could and did seek legal advice from the Attorney General on particular issues.

I have a question about memoranda. On page 25 of the report there is a reference to the fact that the Secretary General of the Department informed Mr. Travers that the memorandum on care charges was not submitted to him in 2001. Who drafts memoranda?

They can be drafted in different ways. Civil servants draft the heads of Bills. When the heads are approved by Government they then go to the parliamentary counsel's office for detailed drafting. Policy advice on given issues comes from the Department. The Parliamentary Counsel then endeavours to reconcile the policy view of the Department with the legal framework. He ensures that the legal framework is correct and proper.

A Minister would not be expected to know——

A Minister should have a policy input.

In order that he or she would know about it.

My final question relates to briefing new Ministers. I got a certain impression of this matter yesterday from Mr. Kelly. He called a meeting of the 12 members of the MAC team who each had specific responsibilities and could give brief summaries of the important issues. Would the Minister consider that to be normal practice? At what point would one expect to get a detailed briefing and at what point would a Minister be au fait with matters relating to the Department?

It depends on how the Minister approaches the matter. In my experience one would initially have a joint meeting. Documents and briefing papers would be prepared for an incoming Minister. One would expect the headline issues to be contained in the briefing papers or in the original. In other words, one would get the policy framework for the year, whether legislation was planned and what it concerned, the issues to be resolved and so on.

Would the Secretary General be proactive in advancing matters or would he or she take the lead from the Minister and wait for him or her to request further detail on certain issues? Does the Minister agree that, in effect, new Ministers follow the Secretary General's lead until they become more familiar with the job?

I am not quite sure what the Deputy means. The Secretary General would chair the meeting with the Minister. Each assistant secretary general or principal officer would be asked to outline the major issues in his or her section. One would want to know what headline issues are immediately coming down the tracks, what are the medium-term issues and so forth. If a Minister wanted a more detailed briefing on a particular issue he could ask for that from whoever was responsible, either the Secretary General, the assistant secretary general or whoever, who would then come back with the information.

It would not be long before a new Minister would understand all of the issues, both the important and the less important ones.

It would not be that long. One would have to get into it fairly quickly. One cannot understand everything straight away.

Given that the health boards were the health-delivering agencies at the coal face, did the Minister, while he was Minister for Health and Children, ever receive a motion from a health board outlining its concerns about the charges? To my knowledge, the Minister attended all the annual conferences of the Association of Health Boards, the national umbrella body. I believe he engaged in a questions and answers session. Was this matter ever raised with him at national level on that basis?

I do not believe the health boards ever tabled a motion on this issue. I do not believe I attended all the meetings of the Association of Health Boards although strenuous efforts were made to get me to attend.

The conferences.

I attended some of the conferences, but probably not all of them. The matter was not raised at the conferences.

The Minister's response again underlines the fact that there was a systemic failure.

I wanted to ask many questions yesterday but other members have asked most of them. The issue of the charges was not deemed to be a priority over the past 29 years. We are all prophets after the event and it is now very clear that the issue has only come to light recently. Admittedly, it was recognised at some time in the 1970s and the 1980s but there was never a clear follow-up. If the matter had been exercising people's minds as much as some members of this committee would like us to believe, it would have certainly constituted a much more significant focal point over the years.

I am puzzled by the Minister's confusion over the word "briefing". A briefing is a briefing. If somebody made a deliberate point of meeting the Minister and accompanied him up a stairs, he would have exchanged information with the Minister. Mr. Kelly reckons the journey in question took approximately 10 minutes, on the grounds that he was out of the meeting for ten minutes. He obviously exchanged information with the Minister and this, in effect, was a briefing. Obviously, there are different kinds of briefings, including formal meetings sitting at tables, video-conferences and telephone calls. I do not agree with the Minister's view on this matter and do not expect him to agree with mine. Mr. Kelly explained to the Minister the issues involved. He stated he discussed with the Minister the long-term implications of a negative reply from the Attorney General.

Consider the question of the Minister receiving a folder containing legal advice before the meeting. He has a chauffeur-driven car and I presume he was not driving himself on the morning in question. Therefore, I presume, unlike those who have to drive to meetings themselves, he had the opportunity to read the document in the car, or at least glance over it.

What would have happened if the South Eastern Health Board had not taken the initiative and sought legal advice? We are hiding behind this matter at this committee and it is coming across loud and clear today. The reality is that there was certainly a question mark over the illegal charging of patients in nursing homes. When did the Minister become aware that some health boards were not pursuing cases in the courts? Their not doing so is a key indicator that they and the Department of Health and Children were unhappy with the legal stance on the issue. It suggests that the so-called defensible stance they believed they had taken was indefensible.

We already know the Ombudsman raised serious questions in 2001. The Minister indicated that after the meeting the Department sought legal advice from the Attorney General and that the Attorney General contradicted the views in the Ombudsman's report. This proves there were considerable legal questions to be asked, since 2001, regarding the care of the elderly in nursing homes. When one couples this with the inconsistent stance of the health boards, some of which did not pursue claims over charges against patients, one will realise that alarm bells should have rung in the Department. The Minister was incompetent and irresponsible for not taking control of the matter. It is improper for him to hide behind independent legal advice considering that the South Eastern Health Board, for example, took the initiative to seek clarification.

The Health (Miscellaneous Provisions) Act 2001, required to grant medical cards automatically to all those over 70, was obviously considered by the Attorney General, as is normal practice. Was legal advice given thereon and were its implications considered in the Department during its production?

I do not agree with the Senator's references to "briefing". Given the legislative significance of this issue at the time, I do not agree that having a brief conversation on a stairs — I do not believe the interval in question lasted ten minutes — constitutes a briefing in any shape or form. As the Senator implied, we will agree to disagree.

I had a Cabinet meeting on the morning of the meeting. I then ran straight to another meeting and then to the one in question. That is the context and I did not get the opportunity to read the papers. That is unfortunate but that is the reality. The folder never came to me and, to be fair to the Secretary General, he does not recollect giving me the folder, as is implied in his interview with Mr. Travers. He stated he must have sent it on and he does not know why he would not have sent it on somewhere else.

If the South Eastern Health Board had not sought legal advice, the matter would have trundled on as it did from 1976. It surfaced on various occasions in the past 30 years and went underground again. Action did not follow. I did not know the health boards were not pursuing certain cases.

When did the Minister first become aware of that?

When I read the Travers report. I did not know the health boards were not pursuing cases. In fact, I thought yesterday or the day before that I might be wrong in this regard. Did the former CEO, Mr. McLoughlin, dispute it? He certainly did not suggest his board had refused. I do not know that but I certainly was not aware of it.

I am not hiding behind any legal advice but saying simply we received an opinion from the South Eastern Health Board. It had to be sent to the office of the Attorney General, as is the case regarding legal advice to a Minister.

Legal advice was given in the context of the Health (Miscellaneous Provisions) Act 2001. It appears it was on the basis of the Attorney General's advice at the time that the term "full eligibility" was included in the legislation. It did not surface in terms of the long-stay charges issue or in terms of backdating to 1976. I do not recall any focus on this during the debate on the legislation. The advice on the Attorney General was certainly not on that issue.

Over the Minister's career, he answered hundreds of oral parliamentary questions. Surely when he was reading out the replies he must have known about the matter. As far as I am aware, the standard reply of the Department regarding the charges was that they were legally sound, or something to that effect. Alarm bells must have been ringing in the Minister's head based on his experience as a Deputy and on his having met constituents in his clinics. He must have said serious questions had to be asked. He knew in 2001 that the Ombudsman had one view while the Attorney General had another. There was a clear difference on the same issue. Surely the role of the Minister is to provide the relevant information. I have no experience of oral parliamentary questions because I am a Senator but I understand that Ministers do not necessarily accept the replies provided for them by the civil servants and often query them. The Minister failed in this regard and should have indicated that there was a difficulty regarding the legality of the charges.

First, I am not aware of how many oral and priority questions there were on this matter. I said earlier — I stand to be corrected because I do not have access to all the records — that I cannot recollect debating this issue by way of oral or priority questions in the Dáil. I might be wrong about that aspect. There were many written questions, but I accepted the bona fides of the material that was sent to me that formed the content of those replies.

Even though the Minister knew there was conflicting advice from the Attorney General and the Ombudsman?

The Attorney General is the benchmark we go by. The Attorney General is the legal advisor to the Minister and the Government. We do not go by anyone else's advice, that is the procedure. That is the point — I accepted the bona fides of the material that was sent and in many ways the fact that those parliamentary questions were being answered in that manner vindicates my position to the extent that many people in the Department felt that this was correct and proper.

With the volume of oral, written and priority questions being tabled and the fact that it was done for years, surely the Department and the Minister should have considered taking a test case to achieve clarity on the issue. It was not a once-off.

Departments do not take test cases, people take test cases externally against the Government or Department and that often results in new situations. The Government relies on the advice it receives.

If the same questions are being asked for years and there is no closure, would it not be time to seek a definitive answer?

There is a range of questions on a range of issues constantly over the years.

There is no doubt that the Minister is impressed by the Travers report. Does he agree fully with Mr. Travers when he criticises the Minister's special advisors? He states that they showed an apparent lack of concern or even interest in the issue of the charges and they might have been expected to more actively probe and analyse the underlying issues involved.

I have already given my answer to that in that I feel the advisors were satisfied the decision had been taken and was going to the Attorney General's office. Advisors cannot be on top of every item coming into a Department, particularly items that come up only for a brief mention and merit a short discussion, which is the case here. That is my view.

The Minister is taking an à la carte approach. He agrees with the good parts of the Travers report and rejects the bad parts.

I accept Mr. Travers's report in respect of officials and the political system.

From what the Minister says, he seems to feel the charges were indisputably invalid from 1976 on. Am I right in that?

It is not a question of my thinking it, it is a question that it is now as per the Supreme Court and the Attorney General a fact that they were legally invalid.

Could the Minister point out where in the Supreme Court judgment it unequivocally says this? I am not sure this is so. If the Minister feels the Supreme Court stated this and the charges were invalid from 1976 onwards based on that decision, can we get copies of all the legal opinions, such as those of the South Eastern Health Board and the Attorney General? As the Government will not be disputing any cases if the charges were invalid, why can we not see the opinions?

I am concerned that, despite the Minister's good relationship with Mr. Kelly, there is a huge conflict between what he is saying and what Mr. Kelly said, not just in the Travers report but between yesterday and today. I understand the Minister finding it unacceptable to get briefing documents the night before but the fact that he asked for them earlier and this did not happen is serious. I can understand the Minister having a difficulty with that.

There is also a situation where the Minister says categorically that this issue was not drawn to his attention either formally or informally but Mr. Kelly gave several instances where he reckons he brought the issue to the Minister's attention, such as the time when he went up the stairs in the Gresham Hotel at the meeting on 10 March and the briefing document which was not read. There are no notes about some of these things which, again, one could complain about. It is not just that Mr. Kelly has a failure in recollection, he is making things up at times or thinks things happened that did not happen.

In view of that why, immediately after he felt it untenable for him to continue in that position, did the Minister not think it unwise to appoint Mr. Kelly to the chair of the Higher Education Authority, a very important position? As a university Senator with a strong interest in third level education, this is very important. Why did this happen immediately? Did anyone say to hold on because this man had really let down the former Minister for Health and Children?

I have not read all of the Supreme Court judgment but the significant part is that the Attorney General in his submission to the Supreme Court accepted the invalidity of the charges since 1976. The next paragraph of its judgment dealt with the over 70s, making it doubly clear the charges were invalid but they were invalid anyway prior to 2001. They were invalid from the beginning, ultra vires.

On the copies of the legal opinion, it was not just on one issue, there were a number of issues involved in the opinion that the South Eastern Health Board sought which are still the subject matter of subsequent legal challenge and, therefore, for the State to protect its interest, it is affirming privilege over those documents in terms of future litigation.

I do not and have not tried to set one person against another in terms of integrity. I had a good relationship with Mr. Michael Kelly. I point people to the more objective other evidence, leaving aside the conflict between two individuals. Mr. Travers did that in terms of looking at the conversation going up the stairs and the meeting on 10 March, the fact that there were no records or decisions taken and no paper was ever prepared for me or presented on the situation. I do not expect people to adjudicate between one person and another.

Overall, a person's contribution to the public service must be taken on board. Mr Kelly is a capable individual and he will do a good job as the chair of the Higher Education Authority. It is an important body with significant issues to address in terms of research and the institutes of technology. We must appreciate the contributions people make to the public service.

Mr. Kelly is carrying the can.

Could we have the part of the Supreme Court judgment which the Minister thinks is relevant?

That is not for me to do, the committee can get the Supreme Court judgment

The judgment has been circulated.

Which part of it supports the Minister's view?

Does the Minister agree that he is in charge of the overall Department, its civil servants, the assigned Ministers of State and any advisors he appoints? If things have been shown to be wrong, is it good enough that the absence of a written briefing gets the Minister off the hook in terms of his or her accountability?

I do not agree with the Deputy. I am not getting off any hook. I do not see it in that light.

In the absence of a written briefing——

The Deputy's question raises another concern of mine. Is this inquiry about getting someone off or on to a hook? I co-operated with Mr. Travers. I told him what I knew and I am doing the same with this committee. That is the sum of the matter for me.

There is validity in the proposition that a good, comprehensive analysis of this issue should have been presented to me.

Was this issue never discussed in the Minister's presence although eligibility and entitlement were major topics at the time? Did the Secretary General discuss it, even informally, with the Minister?

No. This issue did not loom largest in the context of an overall eligibility Bill. I mentioned the nursing home charges already, and the document I said I might forward to the committee refers to the home-help services, day care services, physiotherapy, occupational therapy, and speech and language therapy.

What is the statutory basis for access to all those services in the community? There is a view that the system has grown since 1970 across a range of areas in the health service. The Secretary General told me it was becoming more complex than originally envisaged in the health strategy. We discussed the general eligibility issue and how we could not prepare the eligibility Bill in 2004 because we had to produce the Health Bill to establish the Health Service Executive in that year.

The eligibility Bill would require serious work. He mentioned home-help and community services but did not think the statutory framework was adequate in terms of eligibility. I was conscious of a significant geographic inequity in terms of how people had access to services, particularly nursing home services. In Dublin, there were contract beds that did not exist in the mid-west or other parts of the country. All those issues were on my mind. Some people had to pay €700 or €800 to make up the gap between the cost and the subvention.

There were other issues concerning children and their entitlements.

Is the Minister not responsible for the Department's legislative programme and therefore for any flaws therein? The Supreme Court confirmed this. The Minister was closely involved with the Public Health (Tobacco) (Amendment) Act 2004, which is effective legislation. Does this not conflict with his lack of knowledge of the legislation regarding nursing home charges?

One cannot compare the two. I cannot be responsible for what happened since 1976. I initiated the tobacco legislation with officials in the Department and the Office of Tobacco Control as a political issue with which we decided to run. I required the support of the administration to do the drafting and so on. That was not the same as the issue of eligibility.

Was this Minister not the first to change the Health Act 1970 in a positive way since its inception? To do so he must surely have considered the significant legal implications involved.

I was not.

The Minister was the first to do so. Previously this was done by regulation.

The 1970 Act has been changed several times.

The Minister was the first to change it in a positive way. I have studied the Act's history.

What about the legislation in 1996? Was that a separate issue?

I am referring to the Health Act 1970, which was changed by regulation.

I must check that point. I do not know whether I was the first Minister to do so.

The Minister was the first to change it since its inception. He must have considered the significant legal implications of doing so.

We did not consider them. The issue at the time was the provision of medical cards for people aged over 70. The debate centred on whether they should receive the cards.

The Comptroller and Auditor General carried out a review subsequently on the extension of the medical card scheme. The Minister must be aware he concluded little knowledge was sought before the extension was introduced. He produced a major report on the issue. Does the Minister not agree that the Ombudsman expressed an opinion on the legality of long-stay charges in 2001? In a response to a parliamentary question on 13 February, the Minister indicated that only people with limited eligibility could be charged yet four months later he introduced legislation that conferred full eligibility on all persons aged 70 and over. That seems quite incredible.

It does not.

It seems incredible to me.

It might be incredible to the Deputy but it is not so to me.

Several amendments tabled during the passage of the Health (Miscellaneous Provisions) Act 2001 through the Oireachtas raised the potential impact of the charging mechanism included in the Bill. The Bill was guillotined. What advice did the Minister's senior civil servants give him on this? I am sure they give such advice on potential amendments when a major Bill comes before the Houses. The amendments were not discussed because the Bill was guillotined.

To my recollection this issue did not surface in any of the briefings I received while that Bill was going through the Houses.

It seems reasonable to me to expect the Minister to conduct a high level review of his Department's business plan in the context of its accountability, and to monitor the overall performance of this plan with the Secretary General during the year. The plans are published on the Department's website. In the 2001 plan the Department clearly flags the need to review the legislation appropriate to nursing homes in the context of the imminent Ombudsman's report and this plan was published in 2000 prior to its introduction.

It was also stated in the 2002 and 2003 plan. The 2002 plan refers to a need to prepare proposals for new legislation on eligibility. This seems to have disappeared thereafter.

A business plan is a very detailed document. We go through the headline issues and sign off on it. The different sections in the Department that furnish all the material prepares it. The officials told Mr. Travers those memos were sent to the section dealing with the overall eligibility issue and were to be dealt with in the context of the eligibility legislation. That is in the Travers report.

The mere fact it did not appear in the business plan——

That is what happened.

Does the Minister not think he should have discussed this issue with the Secretary General?

The Secretary General——

A business plan in a Department is the same as in any business.

The Secretary General said yesterday the first time this registered with him as a significant issue was at the MAC meeting of December 2003.

I promised we would conclude by 5.30 p.m. We have achieved that. There are three quick wrap-up questions from Deputies McManus, Neville and Fiona O'Malley.

According to the Travers report, the Ombudsman's report should have ensured the whole area would be examined for its prospective legal and operational validity but that does not appear to have happened. Presumably the Minister accepts responsibility for that. The Ombudsman's report was published, the Minister was aware of it, he met the Ombudsman but he did not act.

No, I did not.

Did the Minister not meet the Ombudsman?

When I asked him this question earlier, he indicated that he had.

I did not meet the Ombudsman. The Ombudsman deals with the Civil Service.

That is fine. I needed only a "yes" or "no" answer.

I wanted to finish at 5.30 p.m.

I am sorry but this is important.

I am sorry too but I want to be right and I said we would sit from 2.30 p.m. to 5.30 p.m.

The Minister then went to the Attorney General. This follows on from the discussion about people coming before the committee.

What is the Deputy's point?

This is relevant to the question of who should come before the committee. I need to ask the Minister about this matter. The Attorney General's office was asked for a legal opinion on the Ombudsman's report that states specifically that the regulations were ultra vires. Did the Attorney General respond to the effect that they were not? What was his response? Was that legal opinion ever published?

No. A legal opinion from the Attorney General is never published.

It is important that we have it. There is no reason we should not have it. It determined the Minister's position. It was given to the Minister before or around the same time as the legislation providing for medical cards for people over 70 years of age was introduced. The Attorney General's office was looking at this issue while the Minister was introducing legislation to alter the medical card scheme. However, there was no response from it on the possible implications.

Not at the same time.

Yes, around the same time in 2001.

The Ombudsman's report was published in January 2001. We would have received legal advice on the issues involved. In his report to the Joint Committee on Health and Children he stated he would have to compile a separate report on the issue.

The Minister should not go down culs-de-sac. Legal advice was obtained——

We received legal advice from the Attorney General but the Ombudsman was not a legal person.

The Minister received legal advice which stated the Ombudsman was wrong and that the Minister had legal standing to do what he was doing.

The legal advice from the Attorney General's office disagreed with the Ombudsman's conclusion in respect of nursing homes——

What did it say?

——in that people over a certain age had had an entitlement since 1970 to full-time care.

There are several issues arising from the Ombudsman's conclusions. He stated the issues of regulation were ultra vires. There was a lack of consistency and a failure to review practices. The Minister received legal advice.

The advice disagreed with that view.

As the Minister could not act ultra vires,the legal advice was that he could continue with the practices followed.

The Department received this advice from the Attorney General which informed, from my reflection, the replies to parliamentary questions. It was around this issue——

I am talking about the way the Department of Health and Children operated. The Minister was satisfied——

The Deputy should let me answer the question. It revolved around the issue of eligibility and entitlement, on which the former Secretary General expounded yesterday.

In the Minister's view, because of the legal advice of the Attorney General, the practices followed by health boards were within the law.

The legal advice was in disagreement with that of the Ombudsman on the issue. I do not have the specifics of the actual advice with me——

Deputy Martin was Minister for Health and Children at the time.

Yes but I received advice from the Attorney General that the Ombudsman was incorrect.

The Minister made a decision as the person responsible.

No, I did not make any decisions.

The Minister saw the legal advice received.

I go with the advice of the Attorney General.

The Minister saw the advice received and accepted that he could continue with the practices, whatever they may be, in which the Department of Health and Children and the health boards were involved.

The Deputy is putting words into my mouth.

No, I am asking the Minister a question.

May I give the answer?

At this point, to be fair——

This is very important.

I received legal advice——

Other members' questions are equally important.

I received legal advice through my officials to the effect that the Ombudsman's conclusion was incorrect.

Did the Minister read the legal advice received from the Attorney General?

I am not sure whether I read it in its entirety. It was explained to me by the civil servants concerned.

Therefore, the Minister did not read that either.

We do not read every piece of major legal advice received from the Attorney General.

Chairman, I ask that we receive copies of the legal advice. There is no reason we should not have it. It is not subject to any court cases.

The Deputy does not know that; it is a matter for the Attorney General.

We must see what the advice was to the Minister.

I call Deputy Neville. I remind the joint committee that the allotted time for this sitting was 2.30 p.m. to 5.30 p.m.

The Minister has stated it is normal for the Department to seek legal advice when legal submissions are made to it. Was he surprised that the decision on this legal advice had to be referred to a management advisory committee meeting? Why did the Department not seek legal advice on receipt of the South Eastern Health Board's submission? Did the Minister read the minutes of the meeting of 16 December? Did he read the agenda for the meeting to know this was an issue to which he should be alerted? Was he aware that, having given statutory rights to people aged over 70 years, that medical cards were then withdrawn when they entered a public nursing home?

Did the Minister see a copy of the report before it was published? If so, how much did he see?

Some critical issues have been raised. Yesterday, when we reached this stage, we discussed whether we should extend the sitting by 30 minutes or postpone it until another day. If the Minister is not available for the next half an hour, can we give him the option of returning at another time?

The Minister has no problem remaining. Deputy Twomey is implying that we have not been answering questions for the last three hours. To be fair, we are trying to accommodate every member. It is not a matter of rushing through the discussion.

What time did the joint committee finish last night?

At 7.25 p.m. The Minister has indicated he has no difficulty continuing. Who decides when we stop?

The Chair.

The Deputy may feel that at one juncture all his questions have been answered while other members may not.

Last night we continued until after 7 p.m.

We do not have to do that again tonight.

I asked the Minister during the coffee break if could he remain until 6 p.m.

I do not think it is right that any member with a question and who attends late in the evening must rush through it.

If we follow that through, we will ramble on all evening.

We could come back next week.

We need to focus.

In fairness, I kept my questions brief.

A gold star for the Deputy.

We should be clear on what Deputy McManus raised. She has stated the Attorney General gave advice on the 2001 legislation that provided for a statutory entitlement to medical cards for people aged over 70 years. One year later the Department of Health and Children received further detailed legal advice from the South Eastern Health Board which contradicted the advice previously given by the Attorney General.

There were two separate advices, one on the Ombudsman's report and the other normal advice pertaining to the drafting of legislation. The second would not have focused on the issue of long-stay charges.

However, the first did.

The second one did not. The Deputy is drawing them together but there were two separate advices.

When the Minister uses the word "possibly", did he not know?

I said the advice we received was clearly not in agreement with that of the Ombudsman, that he was not correct. It revolved around the issue of eligibility versus entitlement.

It was completely wrong if that is the case.

The Attorney General gave two sets of advice.

The Deputies are mixing them up. Certain contentions of the Ombudsman's report were referred to the Attorney General. That was separate advice from that on the legislation we were drafting. When officials receive advice on various sections of a Bill, I do not see all of it. In the extension of the medical card to people over 70 years of age, the issue did not surface. Mr. Travers states it had the ultimate catalytic effect of bringing the issue to the surface.

Everywhere else but not in the Attorney General's office.

That will have to be examined in a separate module.

That makes the joint committee out to be a tribunal.

Perhaps that is what it should be.

It is not.

Obviously, the Fine Gael Party would like it to be a tribunal.

It will not be.

That is what is maddening them.

We will examine the issue then. The status of the 1997 Ministerial Act seems to be in question if the Minister is not taking responsibility for the issue. Was there a communication problem between the executive and administrative sections of the Department of Health and Children that may have contributed to this problem?

I agree with Deputy Neville. I do not know why legal advice was not sought until the meeting of the management advisory committee. Mr. Travers makes exactly the same point when he states that the decision taken at that meeting was entirely predictable and that there was no necessity to wait for nine months, from March to September, for it to be sent to the Office of the Attorney General. I accept that.

Minutes are normally considered at the following meeting of a particular body. The minutes would have been circulated. I cannot recollect if I read them at the time. I read them subsequently as a result of the publication of the Travers report. The full enormity and urgency of the issue does not jump out at one from the minutes. They even contain the phrase "given overall legislative priorities".

I asked if the Minister read the minutes of the meeting.

I possibly did not do so at the time. Minutes are normally considered at a following meeting, when their consideration is the first item on the agenda.

Did the Minister read the agenda for the December meeting?

Yes, of course I did.

The Minister knew the matter was on the agenda.

The major issue to be considered was health reform. That was the big ticket item and the dominant issue. The other matter was not on the Richter scale, so to speak, at that meeting. I know the Deputy is trying to insist it was but it was not. I do not know where it appears on the agenda but it would have rated only a brief mention.

It was number four on the list.

What about the matter of the statutory entitlement being withdrawn from those over 70?

I was not aware of the illegal status of what had been going on for some 20 years before the over 70s medical cards were introduced.

If there was a change——

That issue did not surface. One would have had to have been aware of the original illegality to know the significance of the extension of the scheme to those over 70. I was neither aware of nor alerted to it.

Does the Minister agree that once such medical cards became a statutory right — the granting of ordinary medical cards is at the discretion of the chief executive officers — they could not be withdrawn?

Irrespective of the 2001 Act, a person could not have it anyway. Chief executive officers did not have a legal, valid, discretionary right to carry on as they had been doing for 20 years. That is the point which emerges from the Travers report.

Is it correct that the Minister was not at the March meeting and would, therefore, not have read the minutes?

No, I was not at the March MAC-CEO meeting.

We cannot break off into separate discussions.

The important issue is that the March meeting recorded that the matter had gone to the Office of the Attorney General.

Did the Minister see any part of the report before it was published?

I saw three chapters. Mr. Travers said he was there to interview us. He took us through the chronology as he saw it, from 1976. It was quite a fair process in that regard. Mr. Travers outlined the various events and said he had questions for us to answer. He said he would show us, when he had finished, how he would represent our answers and ask if his portrayal of we said during the interviews was accurate. That is what happened.

We have given a great deal of time to this matter.

Regarding those over 70 and the legalities involved, this was separate advice which did not surface at the time. It was the long-stay charges issue which was under consideration.

I have already commented on the public service management issue. I have a variety of responsibilities in that regard, which are laid out in the relevant Act, as have the Secretary General and the advisers.

We have been discussing these matters for three hours. There have been many opportunities to put questions to the Minister. I do not intend to extend the meeting for another three hours just because someone has not posed his or her question.

The Joint committee went into private session at 5.45 p.m. and adjourned at 5.55 p.m. until 10 a.m. on Wednesday, 27 April 2005.

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