THE HEALTH Service Executive is seeking to keep the proceeds from any cutbacks in staff allowances introduced by the Government as part of the forthcoming economic recovery talks with the social partners.
In a letter to the secretary general of the Department of Health earlier this week, HSE chief executive Prof Brendan Drumm said the health authority was facing a potential further shortfall of €200 million.
He said the HSE proposed reducing costs by €200 million by focusing on, among other items, allowances paid to staff and by extending the normal working day – for payment purposes – to 8am to 8pm.
Prof Drumm said he understood discussions on these issues could arise during the planned engagements between the Government and the social partners in the coming weeks. “If they become the subject of an overall agreement, it is imperative that the savings that may accrue are directed to the HSE to make up the €200 million shortfall identified above,” he said.
Prof Drumm warned that if the HSE found that its proposed initiatives on allowances and extending the working day were insufficient to deal with the shortfall, it would “be considering reducing some services below the levels outlined in the service plan” [its blueprint agreed by the Government on how its budget should be spent].
The Irish Times reported yesterday that the HSE has put in place a freeze on outside recruitment for all managerial and administrative positions, and is to carry out an immediate review of all allowances paid to staff.
Prof Drumm told the Department of Health that there were currently up to 600 different types of allowances in place in the health sector. The HSE estimates that it is paying out nearly €160 million annually in allowances to thousands of staff.