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

I thank Deputies Keating, Deputy Donovan and Deputy McGrath for raising this issue.

As Minister for Health and a member of a government that is currently trying to address an unprecedented financial crisis, I reiterate my commitment to ensuring that scarce public funds are expended on services, not on unsanctioned payments to senior managers.

Front-line staff in the health services are subject to the Government's pay policy and are also playing their part in the reform of the health services through new working practices and rosters. The same rules must be applied to senior managers as to those on the front line.

I take this opportunity to thank all those who work in the health services on the front line for the sterling work that they have done. Despite a reduction of 10% in staffing numbers and a 20% reduction in the budgets, they have improved the service, as is evident from the reduction of 34% in the number of those who must endure long trolley waits and meeting the one-year inpatient target in 2011 and the nine-month target in 2012, and they will meet the eight-month target for inpatient treatment this years and it is a significant credit to them.

In the light of the 2012 HIQA report on Tallaght Hospital, at my request the Secretary General of my Department wrote to the then CEO of the HSE in May 2012, asking him to take steps to ensure that senior managers in other section 38 agencies were not in receipt of remuneration in addition to the approved rates. On foot of this, the CEO of the HSE requested the HSE's internal audit directorate to undertake a review of remuneration in section 38 agencies. This exercise identified a significant number of cases in which senior personnel were in receipt of additional remuneration outside the terms of the approved pay scales.

In the light of these findings and having consulted with the Department of Public Expenditure and Reform, on 27 September 2013 my Department issued to the HSE a detailed pay policy for the health service, in particular organisations funded under section 38 of the Health Act 2004 to provide services on behalf of the executive. The pay policy makes clear that bodies funded under section 38 of the Health Act 2004 may not supplement approved rates of remuneration with either Exchequer funding or non-Exchequer sources of funding.

On 30 September 2013 the HSE wrote to each of the service providers concerned, providing them with the internal audit report and the pay policy, seeking confirmation that remuneration arrangements are in full compliance with this policy.

I met the Director General of the HSE earlier this week to receive an update on these matters. The HSE has a team of senior managers engaged in a detailed process, involving verification of the current position in each agency and the taking of all necessary follow-up steps to ensure compliance with Government pay policy. Meetings are currently being arranged with the organisations concerned.

In regard to the Central Remedial Clinic, the HSE has advised me that the unsanctioned payments arrangements entered into by CRC with its former CEO and other senior staff at the organisation were not at any stage agreed to or sanctioned by the HSE.

I will be monitoring this process closely and am satisfied that the HSE will take whatever action is necessary to achieve full compliance with Government pay policy from the agencies concerned and to ensure that any governance deficits identified are comprehensively rectified immediately.

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