Dara Calleary (Mayo, Fianna Fail)
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Question 9: To ask the Minister for Jobs; Enterprise and Innovation if he will publish the Forfás report presented to him on the impact on employment and competitiveness of changes to sick pay; and if he will make a statement on the matter. [11539/12]

Richard Bruton (Dublin North Central, Fine Gael)
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As I indicated to the House in reply to Questions Nos. 129 to 131, inclusive, from Deputy Willie O'Dea on 6 December last, I asked Forfás to examine the potential impact on competitiveness and employment of statutory sick pay, if such a scheme were to be introduced in this country. I indicated at the time that it would be premature of me to comment on the report provided to me by Forfás until the Cabinet has completed its consideration of the issue.

I reiterated the position to Deputy O'Dea in a topical issue debate on Tuesday, 21 February, when I explained that interactions between an agency and a Minister engaged in a consultative process are not generally published. For this reason, I do not propose to publish the Forfás report at this stage.

The Minister for Social Protection, Deputy Joan Burton, who has policy responsibility for the illness benefit scheme, held a consultative meeting recently to discuss the feasibility and potential impacts of introducing a statutory sick pay scheme in this country. That was very much a first step in considering a range of issues that need to be examined in detail before any proposals can be progressed to possible implementation. The Minister, Deputy Burton, clearly indicated at the consultative forum that nothing has been decided yet on statutory sick pay.

Forfás attended the Minister's consultative forum and commented that any proposal that would increase costs for business would be of concern, and that further work was required to assess the potential cost of the proposal to enterprise, how these costs might be borne across different sectors, what implications the costs might have for employment, and what other actions could be taken to achieve the required goal of reducing the cost to the Exchequer of illness benefit.

I also appreciate the concerns of business representative bodies about the cost a statutory sick pay scheme might have on businesses. For those reasons, while I recognise that there are legitimate issues regarding the management of illness benefit budgets, it is clear that further research is required before any decision can be made by the Government on a statutory sick pay scheme.

Willie O'Dea (Limerick City, Fianna Fail)
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The Minister has said that it is premature to publish the Forfás report at the moment. Could I deduce from this that he intends to publish the report at the appropriate time? Could I ask him for an assurance now that he will publish the report before the Dáil debates the matter because if a scheme of this nature is introduced, most assuredly it will be contested and debated in the Dáil?

Does the Minister agree that it is only fair that if one has an expert report on the implications for employment of the proposed action by the Minister for Social Protection that the report, information and research should be available to the Dáil? What interaction has the Minister had to date with his colleague, the Minister for Social Protection, about this potential scheme?

Richard Bruton (Dublin North Central, Fine Gael)
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The Deputy is well aware that Government discussions are privileged and are not made known. Where decisions of this nature occur for consideration they are rightly protected by Cabinet confidentiality and collective responsibility, which are very important. Any presentation of such a proposal will be accompanied in the usual way by a regulatory impact assessment. Whatever information is available will be presented to the House in order for Members to see its impact. That would be the normal course which I am sure will be followed in this case.

Willie O'Dea (Limerick City, Fianna Fail)
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I put it to the Minister that such a scheme would be unjust in that employers are already paying illness benefit substantially through employer's PRSI. There is no doubt the cost of such a scheme would be passed on to employees. It has a tremendous capacity to destroy jobs at the very time we least need to do something of that nature.

What are the Minister's views on the reasoning put forward that part of the effect of such a scheme would be to combat and reduce absenteeism in the private sector? Does he agree that this is a baseless argument, in that absenteeism in the private sector is running at approximately 2.5%, which is less than half of the public sector's figure?

Richard Bruton (Dublin North Central, Fine Gael)
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As the Taoiseach stated last week when the Deputy's leader asked this question, absenteeism is a greater problem in the public service, which generally accounts for a relatively small proportion of PRSI. We need to examine this issue. Most small businesses do not have a sick scheme and this would be a fresh burden were it applied to them.

On the other side of the discussion, the OECD shows that the rate of reliance on invalidity and sickness payments in Ireland is higher than it is in comparable countries. When demographics are taken into account, it is higher still. This presents an issue. A debate that would give representatives of small and larger businesses an opportunity to have their say would be important. We are out of line in this area. If a large number of people must receive long-term sickness payments, they lose the opportunity to use their potential, the State suffers a loss and there is a cost to the Exchequer. The debate is legitimate and we need policy proposals that balance a number of requirements.