Oireachtas Joint and Select Committees

Thursday, 20 September 2012

Joint Oireachtas Committee on Education and Social Protection

Actuarial Review of the Social Insurance Fund: Discussion

10:40 am

Photo of Fidelma Healy EamesFidelma Healy Eames (Fine Gael)
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Sick pay is a controversial issue. The Minister has put forward the proposal that an employer should pay for the first 28 days of sick pay in respect of employees. I have resisted this proposal from day one. We have heard a number of presentations on this issue, including one yesterday from the small and medium-sized enterprise, SME, sector, at which it was indicated that if the Minister moves on this proposal, some 20,000 indigenous jobs in this country could be lost. Employers could not meet this cost. The evidence indicates the average number of sick days taken in the public sector is 11 compared with three to six days in the private sector. Even though overall absenteeism in the private sector is lower, employers could still not meet that cost.

I accept the witnesses cannot comment on policy. However, I presume they are hearing the arguments against this proposal. Other solutions must be found. I would not welcome a situation whereby our small and medium-sized enterprises would be forced to relocate to, say, Wales or to hire their employees from Northern Ireland, which is what they will be faced with if the Minister's proposal in regard to sick pay is introduced for the sake of balancing the books. I understand the Minister, Deputy Burton, is under pressure. Perhaps it could be provided that the employee also bear some responsibility around sick pay. I would welcome Ms Kennedy's comment, if possible, on that issue.