Phil Hogan (Carlow-Kilkenny, Fine Gael)

I thank Deputy Bannon for raising this matter and apologise for the absence of the Minister for Health and Children, Deputy James Reilly, who has asked me to reply on his behalf.

The HSE introduced new arrangements for contracting agency staff on 14 March 2011. The appointment of agencies to provide health staff, including agency nurses, is a HSE procurement matter. The new contract for agency staff is part of the approved HSE service plan for 2011 and will deliver cost savings in excess of €40 million across the health sector, thus helping to protect services. The use of agency staff has always been a feature of the health system and will remain an ongoing requirement to fill short-term vacancies and ensure continuity of service provision. All agency staff, including agency nurses, are employed directly by the agencies that are successful in the HSE's tendering competitions.

The new agency contract was raised by health service trade unions at the health sector implementation body established under the public service agreement and was subsequently considered by the national level implementation body. I understand the unions expressed serious concerns about the fact that agency nurses would now be paid at a lower rate than had previously been the case. The HSE pointed out that this was a matter for the agency concerned. The implementation body noted that a process of engagement between both the social partners at national level and the parties within the public service on the implications of the utilisation, terms and conditions of agency staffing, arising from the transposition due by December of this year of the directive on temporary agency work, 2008/104/EC, should commence as soon as possible. The body also recommended that the parties should seek the assistance of the Labour Relations Commission regarding implementation issues.

In summary, therefore, the contract negotiated by the HSE remains in place, but it is my understanding that both parties will attend the Labour Relations Commission to discuss certain issues relating to its implementation. The HSE is required as part of the employment control framework to keep the use of agency staff to a minimum. It has indicated that where possible, in the context of the employment control framework, part-time and work sharing staff will be offered the opportunity to increase the number of hours they work before agency staff are used. However, the HSE is also required to achieve the overall employment targets set out under the Employment Control Framework 2011-2014 as part of the package of measures being undertaken by the Government to address the crisis in the public finances. The framework requires the HSE to achieve a net reduction in employment of approximately 1,500 each year from 2011 to 2014.

The employment control framework provides that agency personnel can be used in exceptional circumstances to provide emergency relief for medical-professional staff providing essential front line health, welfare and protection services. Furthermore, the HSE is allowed under the framework to fill posts on an exceptional basis to maintain essential services at risk and to meet priority service change and reconfiguration requirements once the overall required reduction in employment is being met.

The new contract secured by the HSE for agency staff is only one of a wide range of measures being put in place within the health service to protect services while still achieving the expenditure reductions required under the EU-IMF agreed programme for the stabilisation and recovery of the public finances. The health aspects of the public service agreement recognised that reductions in expenditure and employment numbers would be required and were specifically designed to help protect services in this way.

See this speech in context