HSE bonuses and health service cuts
Enda Kenny condemns a proposed €1.4 million HSE bonus scheme amid threatened reductions in home-help hours and disability supports. The Taoiseach defends performance-related contracts, says the HSE board must consider economic conditions, and argues broader reforms have improved services.
I understand the Government has not yet finalised the guarantee scheme so the Taoiseach is not in a position to answer on that matter. However, I wish to refer to an area over which he has control.
In today's newspaper the Taoiseach states that next week will be a defining moment for Ireland. In the recent past he pointed out that no one will escape the consequences of managing our economy and he stated that greed is a human failing and has not been absent from Ireland. On the day he made that comment, the HSE set up a bonus system for 2009 of €1.4 million, a 20% increase on 2008. On average, there are 300 people on trolleys every day, there have been serious cases of misdiagnosis and deaths from cancer, particularly among women, some 1,200 acute beds are unused and, this morning, it was announced that a rehabilitation facility will be closed. There is still no fair deal for those under economic pressure because of the cost of nursing homes. That is a performance that does not warrant a 20% increase in bonuses over 2008.
Comment on this
It does not warrant any bonus increase. The Taoiseach is not responsible for everything but he is responsible in the main for the economic mess in which we find ourselves. Having checked with HSE authorities around the country, the bonus in place for 2009 will make matters worse when one considers what will happen in community and primary care facilities next year. I am reliably informed that when the Taoiseach brings in the defining moment next week, there will be cuts of at least 300,000 hours in home help, no walking aids, no wheelchairs, no new physios, occupational therapists or speech therapists appointed and a serious curtailment of home care packages with the result that the vulnerable, those who sustained the country in the creation of the Celtic tiger, will be neglected. There is no question about it.
In July, the Government said that the 3% cutback in payroll would not affect education and health. Whatever else he must do in respect of able-bodied people, the Taoiseach should not take the political cleaver to the quality of life of the old and vulnerable, who cannot speak or act for themselves. I would like the Taoiseach to give me an answer on whether he stands over the position where, in advance of what we know will happen in that sector, the HSE is in a position to set up a bonus increase of 20%, amounting to €1.4 million.
Comment on this
The contractual arrangements and conditions of employment in respect of the HSE and its staff refer to the recommendations of the review body on higher remuneration in the public sector. This is about trying to ensure one provides a pay scale that relates to performance based on setting targets. The principles of higher remuneration in the public sector were about trying to bring comparability to the private sector to get such practices in place. Awards should be related to the achievement of highly demanding and challenging targets and stretch objectives that are difficult to achieve. The scheme provides for the payment of awards after the year end where it has been determined that the prior agreed stretched objectives have been met.
Comment on this
These are matters for the HSE board in terms of contractual obligations and conditions of employment. Clearly, I expect it will take into account the new economic situation with which we are contending.
While bonus schemes can be in place, the question of whether they are approved and paid depends on these performance related issues being confirmed and completed over the period of that year. It relates to management issues involving officers in the HSE to which this applies. On the more general point made by Deputy Kenny, the Government is doing all it can to maintain, to the greatest extent possible, the service levels built up over time. We are in a new economic situation and we must deal with the current budgetary position. We are trying to address that as equitably as possible.
Comment on this
It goes back to the point that no one on the Government benches will accept responsibility for anything. The current situation was signed off under the Taoiseach as Minister for Finance, with reckless spending and no management of the value for money secured from what was spent over the past number of years. Lehman Brothers is not responsible for the fact that there will be a serious reduction in home help packages, no walking aids and no wheelchairs next year.
The minutes of the HSE meeting on 9 April were given to Deputy Andrew Doyle in response to a question. These point out that the HSE, set up by the Government and reckoned by the Minister for Health and Children to be a once in a generation move to provide world class health services, is now being deconstructed by the same Government because it has failed. During its deconstruction, McKinsey consultancy was employed at a cost of almost €1 million to point out how it should be done. The minutes of the board meeting state it discussed key design principles and requirements to maximise organisational effectiveness and deliver greater integrated service management. It has cost almost €1 million to deconstruct something described as a once in a generation move to provide world-class health services.
This morning, President Sarkozy stated there should be no more bonuses or dividends and the same is being stated in the United States and Britain. Here we are, under the tutorship of the Taoiseach, having agreed a 20% increase in bonus payments for the HSE when many areas of our health services are faced with decimation, particularly those dealing with the old, vulnerable, weak and voiceless. The Taoiseach stated there would be no cutbacks or 3% payroll reduction in frontline health services. If the Taoiseach proceeds down this line, whatever else he has to do with able bodied people he should not attack the old, weak or vulnerable.
I would like the Taoiseach, as director of affairs in the country, to state that based on its performance and what we know will happen next year, the bonus scheme for the HSE will not be paid. Allowing another €1 million to be spent in consultancy, as was pointed out to Deputy Doyle, in breaking up what the Minister for Health and Children stated would provide world-class health services speaks for itself in terms of the type of management, effectiveness and non-acceptance of responsibility of this Government for anything that happens. It is all independent advice. Will the Taoiseach deal with this?
Comment on this
As I pointed out, contractual issues are raised and while the Leader of the Opposition might like to ignore them, they cannot be ignored and must be dealt with. I also made the point that bonus systems must be based on performance related criteria.
Comment on this
There is a lack of performance.
Comment on this
The populist argument can be made by the Opposition day and night, as it always is, but that must be related to performance targets and part of the question of public sector reform and getting people into the public sector was ensuring we had bonus systems which correlate to the private sector.
Comment on this
The chief executive earns €1,700 per day.
Comment on this
This was proposed and agreed by people because it was a way of bringing private sector people into the public sector pay scales. We agreed this was the way to proceed. The HSE board must take into account the new economic situation we face. One cannot decide willy-nilly to break conditions of employment. One must ensure the performance-related criteria are stringent and ambitious.
Comment on this
The HSE board makes those decisions and that is right. That is how it is in respect of every bonus payment scheme.
With regard to the more general issue related to consultancy and the McKinsey report, this issue is to ensure that in the reorganisation which has been taking place the management system interrelates between the community care system and the acute hospital system. Changes are being made to ensure this join-up is there and that is a good thing. A lot of work has also been done on reviewing the personnel management of the operation and the Minister for Finance will have views on this and will discuss them with the House next week. This is all part of a major reorganisation taking place in the health service.
Comment on this
Despite all that has been said by the Opposition, measurable improvements have been made in what has been taking place in a range of activities.
Comment on this
There has been none whatsoever.
Comment on this
Many people using the health service are far more satisfied with it now than they were in the past.
Comment on this
There are continuing problems but rather than defending the present method of delivery in the system perhaps the Opposition should support the reforms needed and proposed in many instances by the HSE——