Oireachtas Joint and Select Committees

Thursday, 13 February 2014

Public Accounts Committee

2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 2 - Government Debt
Chapter 28 - Accounts of the National Treasury Management Agency
Chapter 29 - Clinical Indemnity Scheme
2012 Annual Report and Accounts - National Pensions Reserve Fund

1:50 am

Mr. Ciaran Breen:

Let me explain some of the things that influence this. In 2012, for example, we had a series of hip implant cases from DePuy, whom we managed to get to take over all of those cases. Initially, reserves had to be made for those 230-odd cases. We could not be sure when we got those cases that DePuy would offer us an indemnity on them. I think the Deputy would agree that is quite a number of cases to get and handle in any one year. Not alone did we manage to get DePuy to take over those cases, we got them to pay a substantial sum towards our administration costs and our legal costs for dealing with them initially. In 2013, for example, we got in the order of between 110 and 120 symphysiotomy cases, all of which arrived together. These kinds of cases push up the estimated liability.

I will tell the Deputy where we are making savings. Every year, our actuaries indicate to us, based on statistical probability, what they believe we will pay out in a particular year. This year, we made savings of €30 million odd. The year before, we made savings of approximately €40 million. Clearly, we are making savings, based on what our actuaries believe is the amount we would pay in an individual year.