Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Deputy. I will first comment on his earlier remarks and acknowledge that so many people across the country are really feeling the pressure of the inflation cycle we are currently experiencing. It is higher than was envisaged and it is likely to remain higher for longer than anticipated. In the budget last October, the forecast of the Department of Finance was that inflation would average approximately 2.2% across 2022 but it is now likely to be higher than that. As we know from recent Central Statistics Office and EUROSTAT figures, it is well in excess of 5% in the most recent measurement. That is a concern.

The Government responded in the budget, with the information we had at the time, with a package of well over €1 billion on tax reductions, which many people across the House did not support. It is one way of giving workers more money back in their pockets. There were also targeted social welfare improvements. Both measures amounted to well over €1 billion, and many measures on the welfare side in particular were targeted, including the change that came into effect immediately on budget night extending the eligibility to the fuel allowance. There were some very welcome changes to certain carer's allowances means tests and so on that had not been changed for well over a decade.

We made changes that will help but if the question is whether they go far enough, I believe we can never go far enough now given the current level of inflation. We are conscious of it and it is why we are bringing forward the electricity credit of €113.50, including VAT. We will continue to keep that under review because we know people are feeling pressure now. The issue is actively being examined and kept under review.

The Deputy spoke about a report and I acknowledge the work that went into it, as well as its findings. The Deputy will have heard what I said earlier by way of action points that I am instituting as Minister, having considered the issues. I relayed some background on this a year ago when I came before this committee on the matter. There was a failed attempt to recruit a chief executive officer of the Health Service Executive in 2018 and the process had to be aborted because it was not possible to get a candidate. The salary at the time was over €300,000.

As the Deputy knows, it ended up being increased further for the present incumbent who successfully came through the process. On the question of it becoming a reference point, I do not believe this is the case, nor have I seen evidence of it across the Civil Service or public service over the past 12 months. I do not view it as a reference point. A decision was taken given there was a vacancy in the Department at a time of national crisis. The previous Minister and then Secretary General departed the Department of Health on the same day. In the summer of 2020 there was a leadership vacuum. There was no easy way to fill it or address it. The view was arrived at that we wanted to go to the market to get the best candidate who put himself or herself forward. It was agreed there would be an increased salary for the position of Secretary General in the Department of Health. We know what happened subsequently. We had the open competitive process. Some months later an appointment was made. It is important to make these points by way of context.