John Perry (Sligo-North Leitrim, Fine Gael)

I would like to apologise at the outset that my colleague, the Minister for Social Protection, Deputy Joan Burton, is unable to be here to respond to this debate. On her behalf, I thank the Senator for raising this important issue.

The question of introducing a scheme of statutory sick pay, whereby employers would directly meet the costs of sick absence for an initial period of illness, is being considered in the context of the need to reform the social welfare system to bring it into line with practices in other countries in this area; the need to address the deficit in the Social Insurance Fund; the need to limit progression from short-term illness to long-term illness or disability; and in the wider context of enhancing the health of the workforce and addressing levels of absenteeism.

A range of complex issues must be addressed before any decision could be taken by Government on the possible introduction of a statutory sick pay scheme. These include the extent of coverage; the duration of payment; the rate of payment; compensation mechanisms for employers where appropriate; and how to ensure that a scheme of statutory sick pay would be enforced and policed.

The impact of introducing a statutory sick pay scheme would be contingent on the way all of these issues are addressed and how, ultimately, such a scheme would be structured. The Minister is acutely conscious of the pressures facing employers in the current economic climate and, in particular, the pressures facing small and medium sized enterprises. A preliminary analysis based on estimates of absenteeism in the private sector indicates that if a sick pay scheme with a duration of four weeks were to be introduced, it would add about €1 per week per employee to the costs of employment. In the event that a scheme were to be introduced, the Social Insurance Fund would continue to provide supports for extended periods of illness.

The Minister for Social Protection hosted a consultative seminar on the feasibility and implications of introducing a scheme of statutory sick pay in February of this year. That seminar was attended by a broad range of key stakeholders who were afforded an opportunity to discuss the complex issues involved. A report of that seminar was published on the Department of Social Protection website recently and provides the basis for further consultations with key stakeholders. All of the issues around statutory sick pay will be discussed in the course of the wider process associated with the preparation of budget 2013 and any decisions which might be taken by Government on the possible introduction of such a scheme will be considered in that context.

I thank the Senator again for raising the issue and assure him that the concerns he has raised will be brought to the attention of the Minister for Social Protection.