Oireachtas Joint and Select Committees

Thursday, 27 February 2014

Public Accounts Committee

Payments to Section 39 Companies: Discussion

3:30 pm

Ms Laura Keane:

I would like to take this opportunity to clarify the Deputy's remark that Rehab is almost a public entity. Rehab is not a public entity. It is a private organisation. We contract for all the services we deliver. We have very specific contracts in place. As I explained earlier, those contracts are monitored. We have to deliver on a very specific quantum or number of services. All of those are divided up and are reported on. We are expected to deliver on certain standards and report on our monitoring and performance data. In addition, the people we employ are privately employed. We are not on consolidated pay scales. We do not have the same opportunities or benefits from a superannuation scheme perspective. We pay a separate scheme ourselves. If we do not perform, in relation to our business, we can lose that business.

There is that risk to us as a private entity. We do not have security of tenure as employees and if we are not competitive and performing, we will lose that business and it will be up to us as a private agency to recoup or manage these losses. During the years, perhaps because we were not as competitive, we have lost certain contracts to for-profit agencies which may be operating on different terms and conditions. They are not expected to disclose a number of elements of their contacts.

On the other element that separates us, we are already undergoing tendering and procurement processes for our business. We recently went through the public procurement process and won a tender. We competed against for-profit agencies and came out as the preferred provider based on value for money and finance. From that perspective, ours is a different entity.

Comments

No comments

Log in or join to post a public comment.