Micheál Martin (Cork South Central, Fianna Fail)
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405. To ask the Minister for Health if he has received correspondence or met groups from the disability sector regarding their inability to pay the recent increases from public sector pay deal to their staff; if they do so, the estimated impact this will have on actual disability services; and if he will make a statement on the matter. [32340/17]

Finian McGrath (Dublin Bay North, Independent)
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I wish to inform the Deputy that I recently received correspondence from a number of Section 39 agencies in the disability sector regarding the matter of pay increases for staff.

Section 39 of the Health Act 2004, provides that the Health Service Executive (HSE) may "give assistance to any person or body that provides or proposes to provide, a service similar or ancillary to a service that the Executive may provide." Such assistance may range from contributing to the expenses incurred by that person or body, to allowing them use of an HSE premises. Financial assistance is provided in the form of a grant and the value of such grants can vary.

Where the HSE provides a grant to a voluntary service provider under Section 39, the HSE puts in place a Service Level Agreement with the provider. This sets out the level of service to be provided for the grant received. It is important to note that any individuals employed by these Section 39 organisations are not HSE employees. The HSE has no role in determining the salaries or other terms and conditions applying to these staff. It is an accepted fact that staff of these Section 39 organisations are not public servants. This means they were not subject to FEMPI legislation which imposed pay reductions or to the provisions of the subsequent Public Service Agreements which provide for pay restoration.

It is a matter for Section 39 organisations to negotiate salaries with their staff as part of their employment relationship and within the overall funding available for the delivery of agreed services.