Mary Coughlan (Donegal South West, Fianna Fail)

As regards the legislation before the House, the Minister of State will take on board the views expressed by Members of the Oireachtas. We are providing a statutory basis to allow an inability to pay clause for REAs and EROs. It has not been made available heretofore, but is available within the minimum wage legislation. It is a practical and pragmatic response to issues raised by Members of the Oireachtas, as well as by employers and employees in the context of keeping people in work.

On the HSE issue, the Taoiseach's letter indicates that the HSE issued an early warning notice to its grant-aided voluntary agencies, anticipating incorrectly that the pay reductions for public servants under the financial emergency measures would automatically apply to their agencies. In fact, grant-aided agencies funded under section 39 of the Health Act 2004 are not directly affected by pay adjustments provided for under the financial emergency measures. Therefore, as they are not public service bodies as defined in that Act, their employees are not public servants. That matter has been clarified for those employees. I can forward the letter to the Deputy when it has been signed.

With regard to assurances as to what will happen in the future, we have just completed the budgetary process and the Finance Bill has yet to be brought before the House. Therefore, nobody on this side of the House is in a position to predetermine what will happen in the context of budgetary adjustments next year. However, the Government is still very anxious to involve itself in public sector reform. That reform will create savings and will, therefore, have a positive effect on the need for any further financial adjustments in next year's budget.

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