Mary Upton (Dublin South Central, Labour)
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Question 124: To ask the Minister for Finance if the shortfall, with reference to the target in Health Service Executive staff applying for the incentivised early retirement or redundancy scheme, will impact on savings in the public sector pay bill for 2011 as set out on budget day; if he plans to introduce other measures or such schemes to make up any shortfall; and if he will make a statement on the matter. [1394/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The savings targets for 2011 are as set out in the Budget Estimates and now form part of the allocation for each Department and Agency over the coming year. These savings targets are based on a reduction of public service numbers to 301,000 by the end of 2011, through the continued implementation of the moratorium on recruitment, and other savings to be realised through a range of reform measures, including those set out in the Croke Park Agreement. The contribution of the health sector voluntary early retirement (VER) scheme/voluntary redundancy scheme (VRS) to these savings was provisionally estimated at around €123 million, with a corresponding reduction in the numbers employed of some 2,250 staff on a whole-time equivalents (w.t.e.) basis, based on an up-front cost ceiling of €250 million and depending on the take up of the early retirement/voluntary redundancy options between management/administrative and support staff. As is normal, each Department and Agency will be expected to take appropriate steps to remain within their 2011 Estimate allocation. The delivery of the required savings, including payroll savings, will be monitored closely and any necessary policy adjustments would have to be considered in that overall context during the course of 2011 and later years.

I understand that the latest figures on take up under the VER/VRS is approximately 2,000 on a headcount basis but my Department is still awaiting final figures on costs and savings from the HSE and the Department of Health and Children. It would be a matter for the HSE and Department of Health and Children in the first instance to assess the implications of the actual take up of the scheme and to make proposals to my Department in the matter, if appropriate.