Tommy Broughan (Dublin North East, Labour)
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604. To ask the Minister for Health his plans to initiate a statutory or regulatory prohibition on chief executive officers or chairpersons of organisations in receipt of funding from the Health Service Executive receiving bonuses or salary top-ups. [2432/14]

Peadar Tóibín (Meath West, Sinn Fein)
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634. To ask the Minister for Health when the new salaries for heads of charities will come into effect. [2656/14]

James Reilly (Dublin North, Fine Gael)
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I propose to take Questions Nos. 604 and 634 together.

As was outlined in the HSE's Internal Audit Report, a considerable number of Section 38 agencies were found to be in breach of Government pay policy with regard to the remuneration of senior staff.

The Department of Health pay policy circular, which was issued on 27 September 2013, made it clear that Section 38 funded agencies may not supplement approved rates of remuneration with Exchequer funding or non-Exchequer sources of funding and instructed the HSE to ensure that any non-standard allowances which are being paid in the absence of written sanction from the Department of Health with the consent of DPER, should cease immediately and to seek recoupment of any overpayments.

The HSE has introduced a new requirement for the Board of each Agency to furnish the HSE with a Compliance Statement, which will include confirmation that all staff are paid in accordance with the Department of Health’s consolidated salary scales. Each agency has been asked to confirm by 31 January that they will sign up to the Compliance Statement process. This statement will have to be approved by the Board of each Agency on an annual basis, signed by the Chairman and another Director on behalf of the Board and submitted to the HSE together with the organisation’s Annual Audited Accounts. This Annual Compliance Statement will be required in addition to the annual Service Agreement between the Agency and the HSE.

Senior HSE managers have met and will have further meetings with all of the disability organisations and hospitals concerned to ensure that they develop a clear plan to achieve full compliance with health sector pay policy and it is important that due process is followed.

I welcome Minister Shatter’s announcement that the Charities Regulatory Authority will be established by Easter. The new Authority will establish a statutory register of charities and registered charities will be required to provide reports of their activities to the Authority on an annual basis. These reports will be made available to the public. The establishment of the Charities Regulatory Authority will provide a much needed increase in transparency and accountability in the charity sector which is absolutely necessary to help rebuild trust and confidence in the sector.