Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank Deputy Farrell and agree with her point on the value of section 39 organisations and the work they do. I met representatives of several section 39 organisations over recent weeks in the lead-up to the budget and they made the point to me on the impact of the pay deal on them. As they are of course grant-aided organisations, they receive their financial support directly from the HSE. I expect the financial support they receive from the HSE will need to reflect the fact that there is an increase in funding for the Department of Health and that pay costs will now present an additional burden for many of these organisations, which are competing with the public sector to attract and retain staff. As matters stand and as the Deputy is aware, their staff are not public servants. They receive significant grant support from the Exchequer. Recognising the cost-of-living pressures and the costs of running the services, we have made an additional provision across the health area of €110 million, much of which will go to section 39 organisations between now and the end of the year to help them to sustain service provision.

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