Redundancy deals likely to target surplus HSE staff

HEALTH FUNDING:THE GOVERNMENT has sanctioned a voluntary redundancy scheme for health service staff as part of the package of financial cutbacks announced yesterday.

Minister for Health Mary Harney also said last night that savings of €144 million would be generated within the health sector as part of the Government's cutbacks.

This includes €85 million originally earmarked to fund the Government's new "Fair Deal" system of financing long-term care. This project has been delayed due to legal concerns.

Meanwhile further health cutbacks are also set to be announced in the weeks ahead as the Health Service Executive (HSE) publishes its own cost-saving programme aimed at tackling a potential €300 million deficit this year.

The Department of Health said the cost-saving measures announced by the Government yesterday were separate to proposals being drawn up by the HSE to allow it to live within its financial allocation.

Minister for Finance Brian Lenihan said his department and the Department of Health would draw up proposals for a targeted scheme to reduce surplus staff in the HSE. He said consideration would also be given to extending this scheme on a selected basis to other public service agencies.

A spokesman for Ms Harney said no decisions had yet been taken on the number of staff to be let go as part of the voluntary redundancy programme.

The Irish Times revealed in May that the HSE had proposed that up to 1,000 staff including 200 senior managers could go under a voluntary redundancy scheme that could cost €30 million.

A spokesman for Ms Harney said this situation would have to be reviewed in the light of proposed new regionalised structures in the HSE and the proposed merger of the existing systems for administering hospital and community services. Ms Harney said savings of €38 million would be generated from the slower-than-expected roll-out of the package of new developments provided for in the December 2007 budget.

These include new immunisation services as well as services for older people and the disabled.