Budget will see ‘€5 or €10’ extra in weekly wage packet - Varadkar

Minister says Irish health service is ‘very difficult place to work’at the moment

Minister for Health Leo Varadkar did not think people would welcome an increase in take-home pay if it came at the expense of the health services. Photograph: Alan Betson/The Irish Times
Minister for Health Leo Varadkar did not think people would welcome an increase in take-home pay if it came at the expense of the health services. Photograph: Alan Betson/The Irish Times

Minister for Health Leo Varadkar has said modest tax changes in the Budget will result in an "extra fiver or tenner" in workers' weekly pay packets.

He said the average person would certainly like to see their take home-pay rising again during an interview on RTÉ’s Morning Ireland.

“Whatever tax package happens it’s going to be relatively modest. It’s going to be an extra fiver or tenner in your payslip every week and that would be very welcome,” he said.

“I think people would like to see that because it would be real evidence that the economy is recovering. It would also help to boost the economy itself by increasing demand.”

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However, Mr Varadkar said he did not think people would welcome an increase in take-home pay if it came at the expense of the health services.

He said the HSE would over-run by “a huge amount of money”, something in the region of €500 million.

That had happened because of a “quite significant” increase in the number of people using health services this year, he said. It was very difficult to contain a budget in those circumstances.

He had not formally asked for extra money. Asked if he did get more money, would that limit any tax cuts the Government could offer, he said: “I think it will”.

Mr Varadkar said there were “major issues” around the retention of both doctors and nurses in the health service, with people leaving for all sorts of different reasons.

Irish health service was “a very difficult place to work in”, with doctors and nurses spending a large part of their day apologising to patients.

Their experience in countries like Australia was different, he added.

He said he would ensure that nursing and midwifery were represented at the top table in the Department of Health.

Mr Varadkar said the timeframe for changes in the health service set out be his predecessor as minister for health James Reilly was over-ambitious. "I think it's fair to say that the timeframe was over-ambitious at the start."

It was not going to be possible to “scrap” the HSE this year. He said he hoped agreement would soon be reached with the Irish Medical Organisation (IMO) for free GP care for children under the age of six.

Asked if under-sixes would receive free care this year, Mr Varadkar said: “I can’t say that for certain. That depends on how the talks and the negotiations go with the IMO.”

Mr Varadkar said it was important to him “that we bring GPs with us”.

Taoiseach Enda Kenny said he hoped Mr Varadkar would soon bring recommendations to Cabinet indicating when under sixes scheme could be achieved.

Mr Varadkar this morning declined to state that the scheme would be introduced this year, saying he could not be certain it would be introduced this year.

Responding to that comment this afternoon, Mr Kenny said: “I’m always sort of amused that it’s so easy to produce 300 pages of recommendations as to why things can’t be done.

“I’m much more interested in achieving Government policy as to how things will be done.

“So obviously the Minister will reflect on the advice that’s been given to him and in accordance with Government decisions he’ll bring his recommendations to Government before too long with hopefully indicative timelines as to when we can have these things achieved.

“But I’m far more interested in how you set about achieving what the Government targets are instead of giving endless, endless volumes of why things can’t be done.”

Mary Minihan

Mary Minihan

Mary Minihan is Features Editor of The Irish Times