Mr. Barry O'Brien:

The vast majority of our allowances emerged from the major pay negotiations in the 1990s. Let us consider the nursing allowance. It emerged from a tribunal with an outcome called the blue book agreement. A Labour Court recommendation was made as a result of the commission on nursing, and there were three subsequent Labour Court recommendations. At the time, management would have been dealing with significant pay claims and each recommendation would have been hard fought throughout the industrial relations machinery. Each would have had a specific reference as well. Since then, as we have changed and moved to modernise, we have had occasion to go back repeatedly to the Labour Court to argue.

In essence, the vast majority of the people involved are on a basic core pay system. The vast majority of the allowances amounting to 2.61% of the total wage bill are paid to front-line service provision people. That is the nature of pay within the health system. People refer to allowances, but the reality is different. Let us consider the role of a public health nurse on one of our islands. That person probably gets the ferry over to the island and spends five days there, living in accommodation on the island and making herself available 24 hours per day, seven days per week. She might have a maternity qualification and perhaps more, and this is to the benefit of all of the islanders. We pay basic pay and relevant allowances but we are getting a good return on that value in providing health care to that population.