James Reilly (Dublin North, Fine Gael) | Oireachtas source

I will deal with some of the specific issues raised by the Deputy. First, this is a Government which is actively pursuing reform of the health service. The issues emerging are as a result of a HSE audit of section 38 bodies, both hospitals and disability agencies. This is a Government which is trying to weed out additional sweeteners and expenditures within the health service at a time when any funding, whether Exchequer or private, should be going into the provision of services for patients, not towards unsanctioned payments to senior managers. Front-line staff in health services are working within the Government's pay policy and also playing their part in the reform of health services through new working practices, rosters, etc. The same rules must be applied to senior managers as to those on the front line. I take the opportunity to commend the great work done by those on the front line to keep health services safe. I also commend them for the improvements made in terms of the numbers who have to endure long waits on trolleys. There has been a 34% improvement in that regard since we came into office.

What we need is a clear picture of all payments made. On foot of the circular issued in September by the Department of Health clearly restating public pay policy, the HSE wrote to all of the agencies in question. On 30 September copies of the HSE's audit report and Government pay policy were sent to all section 38 agencies with a request that they respond by 28 October, ensuring compliance. In total, 33 agencies responded, some with a holding position and others requesting to seek legal advice. On 5 November the HSE again wrote to them, reiterating the requirement that they respond and ensure compliance, with a deadline of today, 19 November.

Every organisation that receives public funds must be accountable and transparent. The Department of Health will receive a comprehensive report within the next few days from the HSE on compliance with public pay scales which I will publish on my Department's website.

As the House will be aware, top-up payments of this nature first came to light in May last year when HIQA published a report on governance at Tallaght hospital. It emerged that an employee of the hospital had been receiving an additional €150,000 in payments since 2005. In total, five senior management staff had received €739,000 in top-up payments between 2005 and 2010, when Deputy Seán Fleming's party reigned supreme. Last May I requested that the HSE conduct an internal audit of all section 38 funding recipients, both hospitals and disability agencies, to ensure similar unsanctioned payments were not being made in other locations. The HSE's audit report concluded that there were 36 different types of allowance being paid to 191 senior managers at an annual cost of €3.224 million. In fairness, some of these allowances such as those to clinical directors are in compliance with salary scales as negotiated under the 2008 consultant agreements. However, in some private cases private funding is used to top up approved rates of pay. A total of 13 agencies pay additional remuneration or benefits such as company cars, car expenses or pension contributions to a total of 34 managers to a value of €912,472. In response to the audit, my Department has issued correspondence which clearly states "salary scales must be strictly adhered to and in no circumstances should an employee receive remuneration in the nature of pay and allowances of an amount greater than the amount prescribed".

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