Oireachtas Joint and Select Committees

Tuesday, 14 January 2014

Joint Oireachtas Committee on Health and Children

Health Service Plan 2014: Minister for Health and HSE

6:20 pm

Mr. Tony O'Brien:

On the sum of €108 million and the issue of the critical changes, in order to step away from the figure of €113 million, we had a supplementary provision of €47 million. Our original internally generated figure for probity of €20 million moved to €23 million, which leaves €63 million unfunded as a result of the elimination of the €113 million element of the probity measures. In addition, we have €408 million. These are areas in respect of which there is an agreed process and it reduces the overall risk at the get-go from a health service perspective. On the question of the sum of €108 million, there will be no measures to support the €108 million which are not provided for in the Haddington Road agreement. The core Haddington Road target for this year, in terms of pay cuts, flexibility, additional hours and all of the other measures provided for under that agreement, is €140 million. What we are going to do is to seek to maximise the extent to which the flexibility provided by staff can be leveraged to reduce operating costs within the health system. There will be no other measures imposed on staff in the health service that are not provided for in the voluntarily agreed Haddington Road agreement. The process that we are going through will produce an outcome which will save some, all - or, conceivably, none - of that €108 million. We are optimistic that a good proportion of it can be produced. At the end of that process we will have a position in which, as the Minister has outlined, we can revert through a process that involves other Departments examining the implications of that. It is very important to stress - and I have sought to do so repeatedly - that we are not seeking from staff anything to which they are not already committed under the Haddington Road agreement. The issue is whether the Haddington Road processes can produce savings that are greater than €140 million, and the process we are going through will determine that. I hope I have addressed all of the questions posed.

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