Fergus O'Dowd (Louth, Fine Gael)
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491. To ask the Minister for Children, Equality, Disability, Integration and Youth the decision-making process for re-designating Section 38 and 39 residential childcare organisations as Section 56 organisations; the consultation that took place with the management and staff of these organisations before their re-designation as Section 56 organisations; if management or staff of Section 38 and 39 organisations were informed by either his Department, the HSE or Tusla of any potential changes to their terms and conditions; and if he will make a statement on the matter. [48568/22]

Fergus O'Dowd (Louth, Fine Gael)
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492. To ask the Minister for Children, Equality, Disability, Integration and Youth if Section 56 organisations were informed that their funding would be reduced by an initial 5% if they refused to sign Section 56 service-level agreements with Tusla in respect of the redesignation of Section 38 and 39 organisations to Section 56 organisations; if any of these organisations subsequently lost funding as a result; if so, the total number; and if he will make a statement on the matter. [48569/22]

Fergus O'Dowd (Louth, Fine Gael)
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496. To ask the Minister for Children, Equality, Disability, Integration and Youth if he has given consideration to the potential impact on voluntary organisations that were redesignated as Section 56 organisations due to their exclusion from pay restoration and in which in many cases staff have had no pay increase for more than 12 years leading to many leaving the organisation to work in the private sector; and if he will make a statement on the matter. [48580/22]

Roderic O'Gorman (Dublin West, Green Party)
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I propose to take Questions Nos. 491, 492 and 496 together.

As Minister for Children, Equality, Disability, Integration and Youth I value highly the work of the community and voluntary sector across the country that provide services to and on behalf of Tusla, the Child and Family Agency. I am conscious of the extremely positive impact these organisations have on improving outcomes for children, young people and families all over Ireland.

I understand that where the Deputy refers to Section 38 and Section 39, he is referring to the Health Act 2004, which is a matter for the Minister for Health. The Workplace Relations Commission (WRC) agreement reached between the Department of Health and HSE and trade unions representing staff in certain section 38 & 39 organisations is a matter for the Minister for Health.

The Child and Family Agency Act 2013 provided for the establishment of Tusla, which included the transfer of certain functions of the Health Service Executive to the new Agency. The Act was signed into law on the 15th December 2013 following substantial consultation and legislative scrutiny.

Community and voluntary organisations who provide valuable services to help Ireland's children and families had, prior to the establishment of Tusla, been receiving funding from the HSE. Since establishment of Tusla in 2014, many of those organisations began to receive their funding from Tusla. The arrangements that Tusla enters into with a person or organisation for the provision of child and family services have been subject to the provisions of Part 8 of the Child and Family Agency Act, 2013. In accordance with Section 56 of that Act, Tusla commissions service providers in over 600 community and voluntary sector bodies to deliver services on its behalf. Such relationships are then governed under a service level agreement. These service level agreements provide clarity to all involved on what funding is to be provided and what service is expected in return for that funding.

The service providers operate independently of Tusla and are responsible for their own internal resource management including the recruitment of employees and the terms and conditions under which their staff are employed. The remuneration of the staff of these bodies is therefore a matter for these organisations as employers.

The commissioning of services is an operational matter for Tusla. Section 56 (2) requires that Tusla determines the maximum funding it proposes to make available during the course of each year under each arrangement and the level of service it expects to receive in return for that funding.

Section 56 (14) is clear that Tusla's arrangements with such providers do "not give rise to an employment relationship between a service provider, its employees or agents on the one hand and the Agency on the other'.

The net funding available to Tusla is determined annually as part of the estimates process and notified to the agency through my annual Performance Statement. In response to the Performance Statement, Tusla will prepare a Business Plan for 2023. In this way the precise level of funding to be allocated to such section 56 organisations for the delivery of specific services will be determined by Tusla, having regard to the overall level of funding available in 2023.

Following Budget 2023, I am pleased to announce that Tusla's funding allocation will be €935m in 2023, an increase 4% on 2022. This underlines my commitment to supporting Tusla and its service delivery partners. The Government greatly appreciates the valuable work of the community and voluntary sector to assist Tusla with its statutory remit and in achieving its strategic objectives.