We understand that you carried a report on your evening news yesterday which stated that 80 jobs would be lost at the Sisters of Charity of Jesus & Mary Services, Moore Abbey. While this report is not without some foundation in reality, it is premature and probably significantly overstated. 

 

Prior to the Budget Announcement of October 14^th 2008, the Sisters of Charity of Jesus & Mary were in the process of preparing plans to run our services in 2009 on a reduction of €900,000 in comparison to 2008 expenditure. This was necessary to

 

a)                  Recover the deficit which we will be reporting in 2008 (which is likely to be of the order of €600,000);

b)                  To safeguard against a further deficit emerging in 2009;

c)                  To secure the financial sustainability of the organisation into the future. 

 

The driver of this deficit has been the non-recognition by HSE of inflation linked to non-pay (heat, power, light; transport, insurance, medical equipment, et cetera) costs in recent years. We anticipate a cost pressure linked to non-pay inflation in 2009 in the order of €450,000. HSE have already confirmed to us that they will not be in a position to offer any funding to assist agencies with non-pay inflation. 

 

The impact of the Budget Announcement 2009, on the basis of the information currently provided by HSE, indicates that we will experience an actual cut in allocation of almost €2 million in 2009. (While the budget statement from the Department of Health & Children references a 1% cut in overall allocation for voluntary disability service providers, the signals from HSE are that this Budget-related 1% will form part of an overall 3% cut in allocation. When the non-pay inflation factor is taken into account, the implications are of an overall cut in allocation between 4% and 4.5%.)

  

As we have exhausted all measures on the non-pay side, we are now forced to achieve this reduction in expenditure on the pay side. For the organisation to recover in the region of €2.9 million translates into probably the equivalent of 70 whole-time equivalent positions. This does not mean, however, that 70 current employees will lose their positions. We are in the process of developing plans to alter rostering arrangements, tightening up on temporary relief panels, not filling a number of vacant positions, discontinuation of any reliance upon agency support, introducing more efficient holiday-cover arrangements. The number of current employees whose position is in jeopardy will be significantly influenced by the success of these salary-saving initiatives. 

 

It is, however, unlikely that we will be able to achieve the necessary level of expenditure reduction without having some recourse to reduction in our overall employment level. 

 

It is unlikely that we will have a clear picture on the detail of the financial-recovery plan until late November. Very careful planning is under way to ensure that whatever arrangements are put in place safeguard the interests of the citizens with disability whom we serve and minimise job losses among current employees.

 

It is relevant to note that the picture could change very significantly if we receive more reassuring information about the application of the Budget Announcement to the disability sector.  

 

It is also important to note for your listeners that the Sisters of Charity of Jesus & Mary Services provide services in Kildare but also in Laois, Offaly, Westmeath and Meath.

 

We employ approximately 750 members of staff in these five counties.