James Bannon (Longford-Westmeath, Fine Gael)
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Question 161: To ask the Minister for Health and Children the reasons the Health Service Executive proceeded with matters relating to the procurement of agency nurses without the involvement of the relevant unions, which is in direct contradiction of the public service agreement relating to procurement; and if he will make a statement on the matter. [7793/11]

James Bannon (Longford-Westmeath, Fine Gael)
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Question 162: To ask the Minister for Health and Children the reason the Health Service Executive gave a monopoly for the supply of agency nurses to a single company, which will not acknowledge, meet or negotiate with unions; and if he will make a statement on the matter. [7794/11]

James Bannon (Longford-Westmeath, Fine Gael)
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Question 164: To ask the Minister for Health and Children the reason the Health Service Executive is acting in contravention of guidelines and refusing to attend the Labour Relations Commission as recommended by the implementation body; and if he will make a statement on the matter. [7796/11]

James Reilly (Dublin North, Fine Gael)
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I propose to take Questions Nos. 161, 162 and 164 together.

The Health Service Executive (HSE) introduced new arrangements for contracting agency staff on 14 March 2011. The appointment of agencies to provide health staff, including agency nurses, is a HSE procurement matter and neither I nor my Department had any involvement in this process. The use of agency staff has always been a feature of the health system and will remain an ongoing requirement to fill short-term vacancies and ensure continuity of service provision. Agency nurses are employed directly by the agencies that were successful in the HSE's tendering competition. The HSE is required as part of the Employment Control Framework to keep the use of agency staff to a minimum. The HSE have advised that where possible, in the context of the moratorium and Employment Control Framework, part time and work-sharing staff are being offered the opportunity to increase the number of hours they work before agency staff are used.

However, as the Deputy may be aware, the health sector trade unions objected to the new contract including the rates of pay. The matter was raised at the Health Sector Implementation Body established under the Public Service Agreement and subsequently considered by the national level Implementation Body. The Implementation Body has recommended that the parties should seek the assistance of the Labour Relations Commission in relation to implementation issues. The Body also noted that a process of engagement between both the social partners at national level and the parties within the public service, on the implications on the utilisation, terms and conditions of Agency staffing, arising from the transposition due by December of this year of the Directive on Temporary Agency Work (2008/104/EC), should commence as soon as possible.

However, the HSE, like all Government organisations, must review its procurement arrangements for all services to reduce costs, ensure efficiency and protect services. The new contract for agency staff is part of the approved service plan for 2011 and will deliver cost savings in excess of €40 million for the taxpayer across the health sector. In this regard, the contract negotiated by the HSE remains in place and it is my understanding that both parties will be attending the Labour Relations Commission.

James Bannon (Longford-Westmeath, Fine Gael)
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Question 163: To ask the Minister for Health and Children the reason the Health Service Executive, in its quest to save money, is targeting lower-paid front-line service providers and not tackling the excessive salary levels of senior administrative and front-line personnel, which is to the detriment of health service provision; and if he will make a statement on the matter. [7795/11]

James Reilly (Dublin North, Fine Gael)
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On 2 December 2010, the Government approved the reduction by 10% of the salary scale and fixed allowances for new entrants to traditional recruitment grades in the public service, with effect from 1 January 2011. This was to achieve a medium-term structural reduction in the cost of the public service and gave effect to a commitment in the National Recovery Plan.

Therefore, this reduction was not applied to staff of the Health Service Executive alone. This measure is one which applies to all newly entrants at traditional recruitment grades across the entire public service. The reduction was targeted at grades where there is a preponderance of recruitment from external sources, so as to limit the effect on existing staff. As it happens, the vast majority of such grades are those of basic, entry-level grades. It should be noted that individuals currently employed in public health service in these basic, entry-level grades or new recruits who have previously worked in the same or similar grade in the public service are exempt from this reduction. The impact of this pay reduction is quite limited, given that the moratorium on recruitment continues to be in place and there is little external recruitment being undertaken either within the public health service, or across the wider public sector.

With regard to the pay of senior staff in the public health service referred to by the Deputy, staff in these grades were subject to the earlier pay reductions in January 2010, as provided for under the Financial Emergency Measures in the Public Interest (FEMPI) no. 2 Act, 2009, along with all other public servants. The Act was introduced in the context of the priority to be given to the stabilisation of the public finances and its purpose was to achieve a reduction of approx €1bn in the public service pay bill in 2010. Public Service salaries of up to €125,000 were reduced by the following:

- 5% on the first €30,000 of salary;

- 7.5% on the next €40,000 of salary; and

- 10% on the next €55,000 of salary.

This produced overall reductions in salaries ranging from 5% to just under 8% in the case of salaries up to €125,000. This was a progressive, measured reduction which provides that those that have higher salaries will contribute more. This resulted in reductions of 8% on all salary for persons with salaries from €125,000 to less than €165,000; 12% on all salary for persons earning from €165,000 to less than €200,000; and 15% on all salary for salaries of €200,000 or more.