Liz McManus (Wicklow, Labour)
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Question 89: To ask the Minister for Finance if his Department's approval was sought by the Health Service Executive for the terms and conditions of employment, including pension rights, of the recently resigned deputy chief executive of the Health Service Executive; if his approval was withheld; the reason for such withholding; and if he will make a statement on the matter. [38987/05]

Joan Burton (Dublin West, Labour)
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Question 217: To ask the Minister for Finance if his Department's approval was sought by the Health Service Executive for the terms and conditions of employment, including pension rights, of the recently resigned deputy chief executive of the Health Service Executive; if his Department's approval was withheld; the reason for such withholding; and if he will make a statement on the matter. [39251/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 89 and 217 together.

The terms of contracts of employment of staff of the Health Service Executive are primarily a matter between the executive and its staff. I will, accordingly, confine my reply to matters relating to my Department's exercise of its statutory role in approving terms and conditions of HSE staff.

The remuneration of the director was, in common with the other national directors in the HSE, settled by agreement with the Department of Health and Children and the interim Health Service Executive after an evaluation of the posts by independent consultants who measured the jobs and recommended appropriate public service comparative pay levels. The post of the director of the national hospitals office, along with the director of primary, continuing and community care, was set at a level higher than the other HSE directors' posts to reflect its importance. The rate is currently €165,716.

The Department of Health and Children sought my Department's approval for the payment of an allowance to the director of the national hospitals office in respect of his acting as deputy CEO of the Health Service Executive. The extra allowance sought by the Department of Health and Children would have amounted to approximately €45,000 per year. The request for an allowance of this size was turned down by my Department on the grounds that it was not clear why any allowance should be paid. It is normal for senior management in public service organisations to cover the role of the CEO in his or her absence. In addition, the director is eligible to take part in a performance related award scheme. If occasions of having to act as deputy CEO gave rise to exceptional burdens of work, this scheme provides an avenue to recognise this.

Superannuation arrangements were set for the post reflecting normal public service terms. Issues concerning these arrangements, including assurances that the person concerned claimed he had received, were brought to the attention of my Department by the Department of Health and Children last summer. While my Department expressed the view that further enhancements of the arrangements did not seem appropriate, it sought clarification as to the form of assurances that had been claimed. My Department received no such clarification in advance of the recent announcement of the resignation of the person concerned. There had been ongoing contact before that announcement between my Department and the Department of Health and Children about the person's eligibility for superannuation.