Terence Flanagan (Dublin North East, Independent)
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185. To ask the Minister for Health his plans to reduce consultants' pay within the public sector; and if he will make a statement on the matter. [6390/15]

Leo Varadkar (Dublin West, Fine Gael)
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Significant steps have been taken to make savings from hospital consultants pay in recent years. The salary scales for new entrant consultants' were reduced by 10% with effect from 1st January 2011. A further reduction of 30% was applied to these scales for those interviewed for posts on or after 1st October 2012. In addition, on 1st July 2013 consultants' pay was reduced in line with the provisions of the Financial Emergency Measures in the Public Interest Act 2013. As set out in the Haddington Road Agreement (HRA), these reductions were not applied to the 1 October 2012 pay scales, having regard to the level of reduction already applied.

In addition, the HRA specifically recognised the need to support recruitment and retention of consultants and other doctors. In light of the specific provisions therein, the MacCraith Group was established at that time and recommended last April that "the relevant parties commence, as a matter of urgency, a focused, timetabled IR engagement of short duration to address the barrier caused by the variation in rates of remuneration between new entrant Consultants and their established peers that have emerged since 2012.

The agreement reached between the HSE and the IMO at the LRC on the 7th January 2015 following engagement that also involved my Department and the Department of Public Expenditure and Reform is aimed at addressing the barrier caused by the variation in rates of remuneration that have emerged since 2012 between new entrant consultants and their established peers. Sanction has now issued to the HSE to proceed with the implementation of the LRC pay proposal.

An essential component of the approach to addressing the State’s fiscal difficulties has been the firm focus on improving public service efficiency and effectiveness. Consultants have been subject to changes in work practices under the Public Service Agreement and the HRA. These include the range of flexibilities agreed at the LRC in September 2012 to enhance productivity and efficiency and the additional hours under the HRA. I have no plans to reduce consultant pay any further.