Dara Calleary (Mayo, Fianna Fail)
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To ask the Minister for Health the impact of the recent Croke Park Agreement on the health budget in 2013; and if he will make a statement on the matter. [13854/13]

Billy Kelleher (Cork North Central, Fianna Fail)
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To ask the Minister for Health the impact of the recent Croke Park agreement on the health budget in 2013; and if he will make a statement on the matter. [13935/13]

James Reilly (Dublin North, Fine Gael)
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I propose to take Questions Nos. 133 and 448 together.

Extremely difficult and complex discussions took place between public service management and public service staff representatives, seeking agreement on a series of measures that will secure an additional €1 billion annual saving from the public service pay and pensions bill by 2015. These discussions concluded on Monday February 25th, with proposals being put forward by the Labour Relations Commission (LRC) on a draft Agreement. A key requirement for the health service during the process was to protect front-line care while at the same time significantly reducing costs.

Subject to the ratification of the proposals, significant savings will be made on the health pay bill. Savings will be achieved through the reduction in the overtime rates payable, the elimination of twilight payments and a reduction in Sunday Premium pay. Savings will also be achieved through the progressive reduction in salaries over €65,000 per annum, measures to delay or freeze increments, and balancing measures for those already at the maximum of their scales. In addition, the draft agreement provides for an increase in working hours for most staff and this will deliver a long-term, sustainable and unprecedented increase in productivity. The increased working hours will, it is anticipated, enable the reliance of the health service on overtime and agency working to be substantially reduced, and at the same time, facilitate the achievement of the further staffing reductions required for 2013 and 2014.

The HSE's National Service Plan 2013 includes unallocated pay savings of €150m. As the Plan contains no specific allocations in relation to this €150m, these are not, as yet, reflected in either the programme or regional budgets. These budgets will however be adjusted downwards, later in 2013, when the breakdown of the pay savings under the proposed Agreement has been definitively quantified.

The Revised Estimates Volume for 2013, which will be published shortly by the Minister for Public Expenditure and Reform, will set out the revised allocations for Votes arising from the proposals made by the LRC.