David Stanton (Cork East, Fine Gael)
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Question 254: To ask the Minister for Health and Children further to Parliamentary Questions Nos. 249 and 301 of 19 January 2010, if she will list the bodies which qualify as Health Service Executive service providers under section 38 of the Health Act 2004 and so are classified as public service bodies; the bodies to whom the HSE pays a grant towards running costs under Section 39 of the Health Act 2004 and so are not liable for pension levy nor salary reductions; and if she will make a statement on the matter. [31446/10]

Mary Harney (Dublin Mid West, Independent)
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The Financial Emergency Measures in the Public Interest (No. 2) Act 2009 (FEMPI), provides for the application of a reduction in remuneration for all public servants. For the purposes of the Act, a public servant includes a person who is employed by, or who holds any office or other position in a public service body. The Health Service Executive and bodies funded under Section 38 of the Health Act 2004 are public service bodies, as defined in the FEMPI legislation.

Grant aided agencies (funded under Section 39 of the Health Act 2004) are not directly affected by the pay adjustments provided for under the Financial Emergency Measures in the Public Interest (No 2) Act 2009 because Section 39 agencies are not public service bodies as defined in that Act and their employees are not public servants. However, as you know, the Government has decided to reduce its payroll costs in various ways - principally by reducing the salaries paid to public servants and reducing the numbers employed. It has also decided to seek further reductions in the fees paid for certain professional services under the provisions of the Financial Emergency Measures in the Public Interest (No 1) Act 2009. These and other measures agreed in Budget 2010 are deliberately designed to protect the existing levels of public services and to provide a more sustainable payroll cost base into the future.

In that context, the grant funding of Section 39 Agencies is subject to the general efficiency savings for the health sector provided for in the Budget. Accordingly, it is entirely appropriate that Section 39 Agencies and other HSE funded voluntary providers take appropriate measures to ensure that they continue to provide the same level of service in 2010 as previously, notwithstanding the reductions in their funding. It is the responsibility of each individual employer to decide exactly what mix of actions should be taken to achieve this goal, to take appropriate legal and other advice, to consult and inform its employees/trade unions as necessary and to manage the HR and industrial relations implications of its decisions.

In relation to the pension related deduction, all employees, including full time and part time employees on the payroll of Section 38 agencies, who are, or are entitled to be, members of a public service occupational pension scheme or pension arrangement are subject to the deduction provided for under the Financial Emergency Measures in the Public Interest Act (No. 1) 2009.

Agencies funded by the HSE under Section 38 of the Health Act 2004 are listed in the following table:

Notes: Please note that while the above PCCC list has 38 entries, there are, in fact, only 25 agencies involved but some of these have a number of different locations e.g. Brothers of Charity, which are listed separately.

The part of the question which deals with the bodies to whom the HSE pays a grant under Section 39 of the Health Act 2004 has been referred to the Executive for attention and direct reply to the Deputy.