Written answers

Thursday, 12 November 2015

Department of Public Expenditure and Reform

Financial Instruments

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
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91. To ask the Minister for Public Expenditure and Reform his views on correspondence (details supplied) regarding the financial emergency measures in the public interest legislation; if he will implement the proposals requested; and if he will make a statement on the matter. [39870/15]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Section 9 of the Financial Emergency Measures in the Public Interest (FEMPI) Act 2009 (No 5 of 2009), allows the Minister for Health to reduce the amount or the rate of payment to be made to health professionals (or classes of health professionals) in respect of any services that they render to or on behalf of a health body. Any reduction is to be effected by the Minister for Health by regulation, with the consent of the Minister for Public Expenditure and Reform. Section 10 of the Act also extends similar powers to any Minister of the Government and such powers have been exercised to reduce the payments in respect of services delivered, for example, by State Solicitors.   

This measure, along with the other measures contained in the FEMPI Acts 2009-2013, continues in force and makes a significant contribution to meeting our international fiscal obligations including bringing the general government deficit below 3 per cent of GDP. However, the measures provided under the legislation should only represent those that are critical to the achievement of our fiscal targets.  

As was stated in my most recent annual review of those Acts, while any immediate reversal of the reductions would significantly compromise our ongoing progress towards ensuring fiscal stability and meeting our fiscal consolidation targets, the continuation by my colleague, the Minister for Health, of the measures applied to contracted Health Professionals under the Act will have regard to the need to commence the gradual unwinding of the measures, as for other groups affected.

Accordingly, the FEMPI Bill 2015 which is currently before the Oireachtas proposes the amendment of Section 9 of the FEMPI Act 2009 to provide that payments made to certain health professionals may be varied (other than by being reduced) by the Minister for Health with the consent of the Minister for Public Expenditure and Reform. A similar amendment to the same effect is proposed for Section 10. 

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