St Joseph’s insurance increases by over 300% in four years
HAVING already been raised in the Dáil by Cork North West TD Michael Moynihan, the issue of costs for Section 39 voluntary agencies, in particular the St Joseph’s Foundation in Charleville, was again raised this week at Cork County Council level.
In his motion before the council chamber, Cllr Ian Doyle (FF) asked that the authority write to Finance Minister Paschal Donohoe requesting that he take “immediate action” to address the huge increase in insurance cost for Section 39 agencies.
The motion also asked that he address “the disparity between these agencies that do not have access to the State Claims Agency as Section 38 organisations have.”
Under the existing regulations the health service is designated Section 38, which allows it access to the State Claims Agency. However, the voluntary sector is designated section 39 and as a result is denied access to the claims agency.
Speaking to The Corkman Cllr Doyle said this has resulted in a vast discrepancy in insurance costs, which he said was placing a massive annual burden on voluntary bodies.
He cited the St Joseph’s Foundation as a prime example of this, pointing out their insurance costs had more than trebled over the four years to 2016.
“In 2012 their insurance bill was €160,000 and by 2016 this had risen to €510,000,” said.
He pointed out that over the past five decades since it was established the Foundation had grown from a one-room facility to a service that now covers the five municipal districts of north Cork and south Limerick. Currently it provides services for almost 300 adults and more than 1,000 children.
Cllr Doyle said that the Foundation relies on voluntary contributions to maintain and expand these services.
“However, much of these are increasingly being used to cover insurance costs. The upshot of this is that funds that were in the past used to improve caring facilities and programmes are now being used to cover day-to-day running costs,” he said.
“If voluntary organisations like the St Joseph’s Foundation are to expand to meet demand they must be allowed an even playing field so that the monies received through donations and fundraising initiatives are used where they are needed the most.”
Cllr Doyle also backed comments made by his party colleague Deputy Moynihan during a Dáil debate ahead of a Fianna Fail motion on the need for increased funding for Section 39 bodies such as the St Joseph’s Foundation. His comments related in particular to the disparity in pay rates between Section 38 and Section 39 workers.
He said that in recent years the HSE cut block grants to these bodies and directed them to cut staff pay in line with other HSE employees and public servants as per the FEMPI legislation and Haddington Road agreement.
“However, even though pay restoration is now on the cards for traditional public sector workers, the same cannot be said for Section 39 workers unless funding is increased. Now that the State’s finances are in a healthier position, funding to Section 39 organisations should be increased to allow for pay restoration,” said Deputy Moynihan.
“The management of Section 39 organisations need the Government to release additional funding to allow this to happen”.