The government is considering the introduction of a scheme of statutory sick pay at this time for a number of reasons – chiefly as a measure to help in addressing the growing deficit in the Social Insurance Fund (which stood at €1.5bn in 2011 and is expected to rise to €3.0bn in 2019 as outlined in the Actuarial Review of the fund which I launched last week), and as a policy measure to reduce the risk of progression from short-term illness to long-tern illness or disability. The introduction of such a scheme would also bring Ireland into line with practice in other countries in this area. However, there is a range of complex issues that needs to be addressed before any decision is taken by government on the possible introduction of such a scheme – including the extent of coverage; the rate of payment; possible compensation mechanisms for employers where appropriate, and how the scheme would be enforced and policed - and these will be discussed as part of the preparatory work for Budget 2013.
I should point out that while I am acutely conscious of the pressures facing employers in the current economic climate, and the concerns expressed by small and medium sized enterprises in particular regarding the introduction of a scheme of statutory sick pay, a regulatory impact analysis is not undertaken on the package of measures announced in the annual Budget Day statement.