The prospect of a strike by hospital doctors in the weeks ahead has increased significantly following the collapse of talks between the Government and the Irish Medical Organisation (IMO).

The dispute centres around the restoration of a €3,000 allowance which was abolished a number of years ago.

The Government and the IMO agreed last month to an intensive three-week talks process on the “living out allowance” for non-consultant hospital doctors in a move aimed at resolving a High Court case on the issue.

However, sources close to the doctors’ organisation said that when talks resumed on Monday morning, Government officials said they were not now in a position to continue with this process and the issue of the restoration of the allowance would have to be dealt with as part of the overall Public Service Pay Commission.

The IMO is now to ballot its non-consultant hospital doctor members for industrial action. This is likely to take place before Christmas, although there is no indication as yet as to when any industrial action would take place.

Offer expected

Doctors’ representatives had expected to receive an offer regarding the restortion of the living out allowance when the talks resumed on Monday.

However, highly-placed sources suggested the decision to end the direct talks with the IMO had been taken by the Department of Public Expenditure.

Sources said while the Government had agreed at the end of October to enter into a talks process with the IMO on the allowance for doctors, “this had been overtaken by events”.

Sources said that on foot of the recent Labour Court recommendation on increases for gardaí - which many unions believe breached the Lansdowne Road agreement - the Government had begun contacts with the overall public service committee of the Irish Congress of Trade Unions to which the IMO is affiliated.

Government sources suggested that there were fears that if a bilateral deal was reached on the “living out” allowance with the IMO, it could undermine the process with the overall public service committee and lead to further knock on pay claims.

The IMO said that despite reaching agreement in the High Court on October 27th to have talks on the “living-out allowance”, the HSE, Department of Health and Department of Public Expenditure and Reform had “now completely disengaged from discussions and breached the agreement”.

“This now means that the IMO will now proceed with balloting its members on industrial action while also pursuing the matter in the High Court.”

‘Committed to engagement’

In a statement on Monday evening, the Department of Health said both the Minister for Public Expenditure and Reform, Paschal Donohoe and Minister for Health Simon Harris “are committed to engagement with the IMO on matters of mutual concern.

“The particular issue of the ‘Living Out Allowance’ which is under consideration by both parties (Management and IMO) involves potentially significant exchequer resources which have not been provided for in either the current or next year’s budgetary provision.

“Accordingly, this issue would need to be considered in the context of wider Public Sector engagement.”