Finian McGrath (Dublin Bay North, Independent) | Oireachtas source

I thank the three Deputies for raising this matter which I take today on behalf of my colleague, the Minister for Health, Deputy Simon Harris. The Central Remedial Clinic, CRC, is funded by the Health Service Executive under section 38 of the Health Act 2004. Therefore, the CRC is accountable in the first instance to the HSE in relation to pay and superannuation matters. The CRC employs approximately 290 people, of whom approximately 45 are members of a privately funded pension plan operated by the trustee, the Irish Pensions Trust. It is important to explain at the outset that neither the Department of Health nor the Department of Public Expenditure and Reform has any role or function in relation to the operation of this funded pension plan which was established some decades ago by the CRC.

Following an extraordinary meeting on 17 May, the board of the CRC decided to cease contributions to the private pension plan. The CRC then issued notice of termination of contributions to the trustee, Irish Pensions Trust Limited. The notice provided that with effect from 18 May 2016, the CRC was terminating its liability to contribute to the plan. Neither the Minister, Deputy Harris, nor the Department had any advance notice from the CRC of its intention to cease contributions to the pension plan. The Department of Health was informed of the CRC decision on 18 May. It is regrettable that the CRC took a decision to cease contributions to the scheme without first consulting with the employees concerned and the HSE. In fact, the Department had previously highlighted to the CRC that any proposal in relation to any pay or pension matter must first be submitted to the HSE. It was also explained to the CRC that Department of Public Expenditure and Reform sanction would be required for any CRC proposal.

Following receipt of information from the CRC on the winding up of the scheme, the CRC was requested as a matter of urgency to prepare viable alternative proposals in conjunction with the HSE. The HSE has today confirmed that it is working with the CRC to find a viable solution in relation to the employees concerned but that as yet, a detailed business case has not been submitted by the CRC. The Minister assures the House that once a detailed proposal is received by the Department, it will be examined as a matter or urgency. The proposal will be considered in conjunction with the Department of Public Expenditure and Reform, which is responsible for the implementation of Government policy in relation to public service pensions. The Minister and I ask the CRC to work as quickly as possible with the HSE to resolve this situation which has left the employees concerned in a most difficult position.

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