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Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: I move amendment No. 22: In page 8, subsection (1), line 40, after "section 2" to insert the following: "(other than in respect of a person to whom subsection (1)(b)(iii) of that section relates)". The purpose of this amendment is to exclude persons described at section 2(1)(b)(iii), namely, those who receive a payment in lieu of membership of a public service pension scheme, from the...

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: We anticipate some additional payment through the family income supplement. I will obtain the information sought by the Deputy and write to him about it.

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: Yes.

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: While I appreciate the point raised by the Deputy, I am advised that the impact will be marginal.

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: Yes.

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: I can try to assist the Deputies opposite. This matter was factored into the general tax prediction for the year as for some time it had been clearly settled policy to seek a substantial reduction in payroll costs through the relevant negotiations. With regard to the precise month by month analysis, my Department is finalising the detailed tax projections for the year and these will take...

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: I move amendment No. 23: In page 9, line 22, after "employment" to insert ", office or position".

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: I move amendment No. 24: In page 9, line 23, to delete "materially distinguish them from" and substitute "are materially distinguished from". This is a drafting amendment to tidy up the text and does not introduce any significant change to the Bill.

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: Deputies will have no such luck.

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: This section was inserted on the advice of the Attorney General because the legislation deals with approximately 330,000 employees in many different settings in terms of contractual arrangements, collective bargaining and custom and practice. The advice was that we should, as a matter of caution, ensure that such a section should be included in the legislation to deal with exceptional...

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: I move amendment No. 25: In page 9, subsection (1), line 39, to delete "circular," and substitute "circular or". This is a technical amendment to ensure the expression "or other document" refers only to an instrument and not to an enactment, contract, arrangement, understanding or expectation.

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: Deductions.

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: Section 9 does not relate to the pension contribution. It is a separate matter. The purpose of this section is to allow the Minister for Health and Children to reduce the fees payable to service providers under the GMS, notwithstanding their existing contracts. This is, as I outlined, an emergency measure in the public interest, and therefore the State is taking to itself the power to...

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: I did not know we were talking about section 10 as well.

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: They are grouped. I will deal with section 10 in a moment but first I will explain section 9. The fees and contracts for each of the service providers traditionally have been negotiated between their representative bodies and the Minister for Health and Children. It is now accepted that the Competition Act 2002 precludes representative bodies and the Minister from entering direct...

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: I will clarify it for the Deputy. Section 9, as the side note points out, relates to reductions in payments to health professionals. It is clear from the first subsection that the powers of the Minister for Health and Children are with regard to rates of pay for health professionals or classes of health professionals. Section 10 is broader but does not apply to the Minister for Health and...

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: Here we are, back to tax again. The pension contribution or deduction is not a tax and what is envisaged in sections 9 and 10 is certainly not a tax but a real reduction in public expenditure and the agreed contract prices over which the State is taking powers to vary under these sections. It has nothing whatsoever to do with the imposition of taxation. It relates to contractual...

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: The righteous indignation is because you characterised this as a tax. It is not a tax.

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: It is a reduction in a contractually agreed payment. That is expressly envisaged in sections 9 and 10 of this legislation. The recitals to the legislation set out the justifications for why the State finds it necessary to vary contracts and expectations in this manner.

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages (25 Feb 2009)

Brian Lenihan Jnr: The reduction is not in the services but in the amounts of payment they receive. That is exactly what is envisaged in this section. I set out examples from the health services and supplemented them with several examples of the kinds of professional engagement comprehended by section 10, such as veterinary officers in the Department of Agriculture, Fisheries and Food or medical assessment...

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