Jim Daly (Cork South West, Fine Gael) | Oireachtas source

I thank all Members for their contributions to the debate on the motion on the important matter of pay restoration for staff in section 39 agencies. It is clear from the contributions made in the House that we are all agreed that there is an issue which needs to be addressed. However, it is a complex one which will need careful thought and consideration to reach a solution. Like my colleague, the Minister of State, Deputy Finian McGrath, I have sympathy for the workers employed in section 39 organisations who find themselves affected by this issue. The motion refers to feelings of frustration and anxiety. I fully appreciate that the situation must be difficult and frustrating. I represent older people who benefit from the services provided by section 39 agencies. I must stress that the work and contribution of the staff in these agencies are highly valued and appreciated. The successful development of palliative care services has been based on a long-standing tradition of positive engagement between the voluntary and statutory sectors. It is the Government's desire that everyone be provided with the type of palliative care service he or she needs, regardless of his or her diagnosis, age or where he or she will die.

Government funding for palliative care services has increased steadily in the past five budgets to €78.2 million in 2017. We now have 223 specialist palliative care beds at 11 locations countrywide. The majority of these beds, 143, are located in section 39 hospices. We plan to open a further 110 beds in the next five years. All HSE areas have community specialist palliative home care teams which play a vital role in enabling people to die at home. Specialist palliative day care is provided at seven locations.

We have achieved much in a few short years, but there is no room for complacency. Many challenges remain, particularly the need to ensure geographical equity of access to specialist palliative care. In budget 2018, in recognition of the work undertaken by the charity sector, the Government introduced a VAT compensation refund scheme to compensate charities for the VAT they incurred on their inputs. The scheme took effect from 1 January and will refunds be made one year in arrears. This commitment will assist to reduce the burden on charities.

The Government is committed to working in co-operation with voluntary sector organisations, including section 39 providers, to continue to ensure Ireland will have a palliative care service which is recognised as one of the best in the world. That is one of the reasons the Government is not opposing the Fianna Fáil motion. We know that there is an issue which needs to be addressed. As stated, however, it is a complex one which will need careful thought and consideration before agreeing a solution that will be acceptable to all.

Under section 39 of the Health Act 2004, the HSE funds organisations by means of grants. It has in place service level agreements with voluntary providers which set out the level of service to be provided for the grant paid to the individual organisation. The grants can range from a high value in the millions of euro to a low value of just a few thousand euro. On the scale involved, in 2016 the HSE provided over €874 million in grants for 2,240 organisations under section 39 of the Health Act 2004.

The motion calls for the FEMPI, financial emergency measures in the public interest, cuts to be reversed, as was expected. However, employees of section 39 organisations are not public servants and, therefore, not covered by the public service stability agreements. This point is crucial and accepted by all sides of the argument.

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