Brendan Howlin (Wexford, Labour) | Oireachtas source

Deputy Fleming made the point about the juxtaposition of reduced formal payment and the interaction it has with social welfare payments, especially for people of low pay when they get to a half-pay rate and the impact that has on the family income generally.

It primarily is a matter for social welfare provision because what is being done here does not alter the current position. The difficulty the Deputy has addressed regarding a diminution in pay could arise right now.

As for the general principle, in their submission to the Labour Court, the public service unions proposed there should be a floor on temporary rehabilitation pay. In other words, there would be a minimum payment that is not less than the personal social protection rate of €188 per week. The Labour Court accepted the unions' proposals in this regard and endorsed the position that a minimum payment equal to social welfare protection rates for those who joined the service before 1995 is reasonable and should be accepted by the management. Therefore, while there are implementation issues to be worked out, the principle outlined in the aforementioned Labour Court recommendation is clear and will be implemented. That is the position for pre-1995 people. In the case of the post-1995 Civil Service, class A contributors have an entitlement to claim illness benefit that is not means tested. Normally, the individual receives his or her sick leave payment from his or her employer and then the public service body recoups the illness benefit payment from the Department of Social Protection. This is the way it normally works. My point is the new arrangement that is being put in place simply mirrors the old arrangements. While it may be worth my having a chat with the Minister for Social Protection on these matters, as the Deputy rightly stated it would be extraordinarily complicated to implement, through a payroll system, a sort of means testing of income within a household between social welfare and reduced formal pay. I believe it would make impossible the practical application of the scheme. However, this may be something that can be caught through the social welfare system, which carries out means testing where people have not paid a class A contribution.

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