Seán Fleming (Laois-Offaly, Fianna Fail)
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421. To ask the Minister for Health the number of business cases he has been asked to approve in respect of sections 38 and 39 agencies for payment of salaries over and above approved pay scales; the number approved; the number still being assessed; if he has issued any updated policy directives on the subject; and if he will make a statement on the matter. [26389/15]

Leo Varadkar (Dublin West, Fine Gael)
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My Department has submitted proposals to the Department of Public Expenditure and Reform regarding the business cases submitted by the HSE to red-circle the remuneration of a number of senior managers in Section 38 agencies. The Department of Public Expenditure and Reform is currently considering those proposals.

On 27 September 2013, my Department issued Circular 11/2013 - Compliance with Health Sector Pay Policy. This circular stated that Section 38 funded agencies may not supplement approved rates of remuneration with Exchequer funding or non-Exchequer sources of funding. The policy statement instructed the HSE to ensure that any non-standard allowances which were being paid in the absence of written sanction from my Department, with the consent of the Department of Public Expenditure and Reform should cease immediately.

In addition, on foot of the HSE's Internal Audit Report, the HSE has strengthened governance arrangements with the Section 38 agencies. The Boards of all Section 38 agencies are now required. as part of the Annual Service Agreement process with the HSE to:

- Submit a formal Annual Compliance Statement which confirms that all pay and remuneration of employees in the agency are in line with Government pay policy;

- Adopt and implement core governance standards.

This requirement was put in place for the 2014 Annual Service Agreement process.

Employees of Section 39 organisations are not public servants. They are not included in the HSE employment control ceiling, are not bound by the Department of Health Consolidated Salary Scales and are not members of a public service pension scheme. The Government, however is determined to ensure that public pay policy is respected across the health service and to that end, at my request, the Director General of the HSE has written to 353 Section 39 funded organisations in receipt of HSE funding of more than €250,000, requesting that they have due regard to public pay policy, particularly in respect of senior managers.