Joan Burton (Dublin West, Labour) | Oireachtas source

I thank Deputy Halligan for his question. To set the issue of statutory sick pay in context, total expenditure on the key illness and disability payments administered by the Department, namely, illness benefit, invalidity pension and disability allowance, amounted to some €10.6 billion in the period from 2008 to 2011. Of that amount, some €3.6 billion relates to illness benefit. The estimated cost of the illness benefit scheme in 2012 is €847 million. This, again, is another big ticket item in the Department, as are the cumulative amounts which are over €3 billion per annum.

Against this background, there are a number of compelling reasons the Government is at this time considering the introduction of a scheme of statutory sick pay to cover public and private sector employers. First, it is necessary to take steps to address the deficit in the Social Insurance Fund from which illness benefit, among other insurance-based benefits and pensions, is paid. In 2011, the deficit in the fund was approximately €1.5 billion. Second, such a scheme would help to limit progression from short-term illness to long-term illness or disability, except obviously in the case of people who have a serious disability. Third, it would serve to bring Ireland into line with practice in other countries in this area. Fourth, it would contribute towards enhancing the health of the workforce and achieve active management of absenteeism. This is the way in which the Scandinavian countries, which have good social protection systems, work. They have good outcomes and good social protection systems.

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In considering the matter, I am acutely conscious of the pressures facing employers in the current economic climate, and, in particular, the pressures facing smaller and medium-sized enterprises. I am equally conscious of the need to maintain competitiveness, facilitate business opportunities and generate sustainable employment. I would not accept that introducing a scheme of statutory sick pay would necessarily lead to greater job insecurity in the private sector and experience from other countries supports my view. In this regard, I wish to make it clear that the three day waiting period which currently applies in respect of illness benefit would also apply in any scheme of statutory sick pay introduced.

The question of providing for possible compensatory mechanisms for particularly vulnerable employers is just one of a range of complex issues that need to be addressed before any decision could be taken by Government on the possible introduction of a statutory sick pay scheme. Other issues include the extent of coverage, the rate of payment and how a scheme would be enforced. The Department has engaged in wide ranging consultation to date and all of these issues will again be discussed in the course of the wider process associated with the preparation of Budget 2013.

The Deputy will be aware that questions associated with absenteeism generally in the public sector are being addressed by my colleague, the Minister for Public Expenditure and Reform, and proposals for change in this area are being advanced at present.

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