Mr. Bernard O'Regan:

I thank the Chairman and members for the opportunity to address the committee today on behalf of the 59 service providers which comprise the membership of the National Federation of Voluntary Bodies and, more importantly, on behalf of the thousands of children and adults with intellectual disabilities and-or autism and their families who those organisations support, to discuss our concerns for the future of the voluntary care sector. The federation is the umbrella organisation for the voluntary agencies that provide approximately 85% of the direct support services to more than 25,000 children and adults with an intellectual disability in Ireland. All providers are governed by boards of directors, are made up of some 395 volunteers and are subject to a wide range of oversight, from Health Information and Quality Authority, HIQA, regulations to company law and housing regulations, where the provider concerned is also an approved housing body.

The disability sector is facing a critical challenge in 2019 owing to financial constraints which, if not addressed in a comprehensive way, will have serious repercussions for service provision and for people with disabilities and their families. In 2017, financial losses occurred in 23 member organisations for which full accounts are publicly available. The combined deficits of those companies were €25.2 million in 2017. Some boards that are carrying operational deficits are unable to sign service agreements as that would effectively mean signing off on a "reckless trading" situation which is contrary to their legal obligation as directors of companies limited by guarantee. Some have signed the agreements as a good-faith gesture in anticipation of addressing the underlying funding deficit as part of an engagement process with the HSE. However, if the deficit is not addressed, those agencies will be left with no option but to cut services, transfer services to the HSE, or enter into a voluntary liquidation process.

Several key drivers have given rise to this situation. We have supplied the committee with supporting documentation that provides more information, so I will focus on two key factors. First, providers have frequently felt forced to implement cost-increasing measures following HIQA inspections to avoid being in breach of the law and facing closure orders. Boards of directors are faced with the unenviable task of meeting the terms of HIQA regulations or face legal proceedings, which has often resulted in financial deficits. Second, the changing needs of persons availing of services, together with the higher standards required resulting from regulation, are another significant cost driver in voluntary agencies at present.

Due to the lack of appropriate supports, thousands of citizens with intellectual disabilities are not being supported to live lives of their choosing or to maximise their potential to live as independently as possible as contributing, active citizens. In addition to the personal cost, this is not compliant with the requirements of the UN Convention on the Rights of Persons with Disabilities, which Ireland has ratified. Older family members are trapped in unsustainable caring roles in the community due to the lack of investment in planned supports. Families are forced to watch key milestones in their child's development pass without appropriate intervention due to waiting lists and, in the most distressing cases, children and young people are moving into full-time care on an unplanned basis.

I will now hand over to my colleague, Ms Shakespeare.