Róisín Shortall (Dublin North West, Labour)

I thank Deputies Nash and Keaveney for raising this issue. It provides me with an opportunity to update the House on this matter.

The Health Service Executive informed staff and their representative bodies yesterday that it had decided to defer the payment of further staff travel and subsistence claims until January 2012. A sum of approximately €15 million is involved. The €15 million of potential savings relates largely to the expenses incurred during the last quarter of 2011. The executive has undertaken to meet with the relevant unions to discuss the issue, including how any hardship cases that might arise may best be addressed. The HSE intends to pay outstanding travel expenses in January 2012. This action by the HSE must be seen in the context of a possible full-year deficit of approximately €300 million.

However, notwithstanding the gravity of the HSE's financial situation, the Minister for Health and I do not agree with the approach taken by the executive. While several proposals, including this one regarding travel and subsistence payments were submitted for consideration, the executive's board has not approved this approach.

The Department of Health has been in contact at the highest level with the HSE on this matter and has already been in close discussions with the executive over recent months on how the deficit can be addressed. The Minister for Health has repeatedly said the HSE must live within its budget. However, he cannot accept measures to effect budgetary savings which involve a simple refusal to pay staff what they are owed. Such a move is unacceptable. The HSE must comply with the requirements of the public financial procedures. This means it should meet its matured liabilities, which include travel expenses when they are due for payment.

There are several measures being taken that should greatly assist the HSE in achieving a balanced Vote at the end of this year. These include putting forward a Supplementary Estimate for the executive. The details of this are being finalised and it will include provision for a €58 million shortfall in respect of the early retirement and voluntary redundancy schemes implemented at the end of last year. The Government is also considering allocating savings from the health and children Vote, Vote 39, to the HSE.

It should be noted the HSE statement included a commitment that it would keep the matter under review in the light of its cash position at the end of the year. I am, therefore, confident that with the actions taken by the Government and the measures undertaken by the HSE this matter can be resolved. In the meantime, it is essential staff continue to carry out their duties as normal to provide essential services in the community.

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