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

I have initiated this process arising from the Health Information and Quality Authority report into practices at Tallaght hospital. I requested that the Health Service Executive conduct an internal audit of all section 38 funding recipients. As a result of this audit, as has been reported extensively, a considerable number of funding recipients have been found to be in breach of Government pay policy with regard to the remuneration of senior staff. I have requested urgent action to ensure every agency is fully compliant with Government pay policy.

The HSE has a team of senior managers following up with individual agencies. The director general of the HSE met with the chairpersons and chief executive officers of all section 38 organisations last Thursday. That meeting focused on the requirement of the board of each agency to strengthen governance standards. Also agreed was a new requirement to furnish the HSE with a compliance statement from the current financial year and for each year thereafter. This statement will have to be approved by the board of each agency on an annual basis, signed by the chairman and another director on behalf of the board, and submitted to the HSE together with the organisation's annual audited accounts. This annual compliance statement will be required in addition to the annual service agreement between the agency and the HSE.

Further and separate meetings are being held by senior HSE managers with all of the disability organisations and hospitals concerned this week to ensure that a clear plan to achieve full compliance with health sector pay policy is developed with each agency.

The question of recoupment will be dealt with on a case-by-case basis. As indicated, the HSE is urgently meeting individual agencies and it is important that due process is followed. I have no plans to establish an independent inquiry into the practice of top-up payments to senior executives at agencies funded under section 38 of the Health Act 2004.

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