Kathleen Lynch (Cork North Central, Labour) | Oireachtas source

I thank the Deputy for raising this matter. The current director general of the HSE was in receipt of an allowance of approximately €26,000 between 2006 and 2012. This allowance was granted by the HSE to the Director General when he was chief executive of the National Cancer Screening Service in recognition of very significant additional responsibilities which he took on as project director for the National Programme for Radiation Oncology from 1 February 2006. Even the Deputy would agree we are all grateful for the people that introduced, including his party when in government.

While the allowance granted was intended to reflect very significant extra responsibilities, and these additional duties were discharged successfully over a number of years, this arrangement was put in place without the approval of the then Department of Health and Children and the Department of Finance. As I said, and to be transparent, that was in 2006.

In these circumstances the Department of Health wrote to the HSE in November 2012 requesting that it review its procedures for the sanctioning of pay levels, including allowances. In particular, the executive was asked to take the necessary steps to ensure that adequate governance and oversight controls are in place to ensure that the required sanctioning procedures are strictly adhered to.

The Department of Health has reviewed the circumstances of the case of the director general of the HSE and it is not proposed that recoupment of the unsanctioned allowances be sought. Deputy Kelleher referred to the context, and we have to see it in that context.

The approved salary rate for the post of director general is now €185.350. This rate is at a much lower level than the rate at which the chief executive officers of the HSE were paid in the period 2005 to 2012. The salary of the last chief executive officer of the HSE was €322,113 per annum plus additional benefits. It is important to point out that the role of director general of the HSE is one of the most challenging and onerous roles within the public service. I think we are all agreed on that.

As the Deputy is aware, I have requested urgent action to ensure that every section 38 agency is fully compliant with Government pay policy. The HSE has a team of senior managers following up with individual agencies. In addition, the director general of the HSE is meeting the chairpersons and the chief executive officers of all the section 38 organisations this Thursday. Separate meetings are also being held with the organisations concerned.

Due process will have to be followed in the examination of top-ups to senior staff in section 38 agencies. As outlined in the national pay policy, a section 38 provider may make a business case to the HSE to continue to pay a specific allowance. Where the HSE is satisfied that there are legitimate reasons for continuation of the allowance it may decide to apply to the Department of Health for sanction. Each such case will be determined on its merits and my Department will liaise, as appropriate, with the Department of Public Expenditure and Reform.

I am confident that the HSE will take whatever action is necessary to achieve full compliance with Government pay policy from the agencies concerned and that any governance deficits identified are comprehensively rectified immediately. I agree with Deputy Kelleher that this is an issue of public concern.

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