Haddington Road cuts to apply to charities

The Health Service Executive is preparing to impose Haddington Road agreement cuts on all non-statutory agencies to which it gives grants, such as the Simon Community.

The cuts will affect staff in organisations providing services in areas such as disability, homelessness, addiction, palliative care and child and family supports.

Under section 39 of the 2004 Health Act the HSE funds hundreds of independent organisations to provide services. Annual service-level agreements are reached between Section 39 agencies and the HSE on funding and service provision under such headings as quality and outcomes.

Interference
Deirdre Garvey, chief executive of the Wheel, a voluntary-sector representative organisation, said the HSE move could be seen as interference in independent organisations: "Most have absorbed a hugely disproportionate share of the cuts already but the HSE seems to make it clear the organisations are going to have to do this if they want their service-level agreements renewed."

The organisations contacted have been told to begin reviewing payroll costs and areas such as salary scales, contracted working hours and premium payments.

In a letter to Dublin Simon, HSE area primary care manager David Tully wrote: "While it is understood the HSE is not in a position to issue specific instructions to agencies funded under section 39 to implement salary reductions comparable with those in the public sector, it is our intention to include in service arrangements with all agencies . . . the condition that staff should not be remunerated at levels above statutory pay scales."

The HSE did not provide a comment last night.