Seán Kyne (Galway West, Fine Gael)
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Question 70: To ask the Minister for Social Protection if an impact analysis has been conducted regarding proposals to amend the sick pay system which is of great concern to small to medium sized businesses in view of the consequences the proposals will have for job retention and or creation. [28779/12]

Joan Burton (Dublin West, Labour)
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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.

Before any decision could be taken by Government on the possible introduction of a statutory sick pay scheme, a range of complex issues need to be examined in detail. The potential impact of such a scheme would depend on how these issues are addressed and how the scheme would ultimately be structured. 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. The analysis will be developed and refined as the consultations with key stakeholders progresses.