Business Irish

Sunday 8 December 2019

CPL pockets €50m in HSE outsourcing fees

Minister for Education Jan O’Sullivan
Minister for Education Jan O’Sullivan

Paul O'Donoghue

Anne Heraty's listed recruitment firm CPL Resources netted over €50m last year for providing the HSE with agency staff, new figures have revealed.

The amount was €10m more than the next highest sum - €39.75m for Nurse on Call - and was a jump of more than €6m on 2012's spend.

HSE spending on recruitment agencies has shot up over the last number of years, while the situation was made more difficult with the ban on public sector recruiting.

The payout of €50.1m to CPL is almost level with the HSE's total spend on recruitment agencies for the period of January-September 2010, which was €52m.

The current Education Minister and former Labour Spokesperson on Health Jan O'Sullivan described the €52m spend in 2010 as "truly shocking", saying that it represented an "extraordinary waste" of taxpayer's money.

"This crazy situation has come about as a result of the public sector recruitment embargo. The government ban, which we were told would reduce the cost of running the health service, has had precisely the opposite effect. It is a classic case of a false economy," she said in 2010.

The public sector recruitment embargo was lifted in last month's budget, but had been firmly in place until then.

Ms O'Sullivan could not be reached for comment at the time of publication. Publicly-listed CPL declined to comment. The HSE declined to comment when asked about its payout to CPL or whether it has any other current contracts with the company..

Approximately €238m was spent by the HSE on agency staff last year, with spending up across all regions. Five major firms make up the bulk of the HSE's spending on agency staff. As well as CPL and Nurse on Call, Global Medics Ireland pocketed €26.8m, while Locum Express and TTM Healthcare picked up 9.1m and €6m respectively.

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