Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The Deputy and I both know, but maybe others in the House will not be as familiar with these issues and the Health Act, that the fundamental difference between people who work for a section 38 or section 39 organisation is that if one works for a section 38 organisation one is a public sector employee. One is effectively a public servant and therefore is subject to all the pluses and minuses that come with that, the pluses such as the very good public sector pension and minuses that arise from the various restrictions that apply to hiring and firing in the public sector, and pay reductions and increases where they arise. People who work for section 39 organisations are not public sector employees. They tend to work for a NGO, charity or religious order which is given a block grant from which they are expected to provide services and pay their employees. That is the difference between section 38 and section 39. It is not dissimilar to a company which receives a contract having to cover its costs, provide its services and employ its staff from the money it receives for that contract. It is not acceptable for any organisation that has had its budget increased to reduce the services it provides to its clients and I would take a very dim view of any organisation reducing services to its clients where its budget has not been reduced.

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