Written answers

Tuesday, 25 September 2012

Department of Social Protection

Sick Pay Scheme Expenditure

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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To ask the Minister for Social Protection his views regarding concerns of employers as outlined through representative organisations and many companies of varied size, small, medium and large in relation to proposals to impose sick pay costs on employers; and if she will make a statement on the matter. [40546/12]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The Government is considering the introduction of a scheme of statutory sick pay at this time for a number of reasons – firstly, as a measure to help in addressing the growing deficit in the Social Insurance Fund (which stood at €1.5bn in 2011 and is expected to rise to €3.0bn in 2019 as outlined in the Actuarial Review I launched last week); secondly, as a means to reduce the risk of progression from short-term illness to long-term illness or disability; and thirdly, to bring Ireland into line with practices in other countries in this area. However, I am also acutely conscious of the pressures facing employers in the current economic climate, and the concerns of small and medium-sized enterprises, which have been articulated by representative groups and individual employers.

I would like to assure the House that the range of complex issues that need to be addressed before any decision is taken by Government on the possible introduction of such a scheme, including the extent of coverage; the rate of payment; possible compensation mechanisms for employers, where appropriate, and how the scheme would be enforced and policed – will be discussed in the course of the wider process associated with the preparation of Budget 2013, and the views of stakeholder groups will be taken into account in that process.

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