This week, Õhtuleht and several other newspapers reported that the agency held a summer event for its employees at a spa and manor house complex that could have cost up to €100,000. This is during a period of budget cuts and rising prices.

The opposition Center Party has called for Minister of Social Affairs Karmen Joller, from the biggest coalition party Reform, to resign. The Health Insurance Fund falls under her area of responsibility.

The local elections will be held in October, and one of the repeated criticisms of the Reform Party is that it is out of touch with ordinary people.

On Wednesday morning, Joller wrote on social media that "organizing luxurious summer days offends the sense of justice." Prime Minister Kristen Michal (Reform) reiterated a call for the agency to reshuffle its managers.

Later the same day, Laane spoke to ERR's "Vikerraadio" to put his side of the story across.

Motivating staff

Asked why the summer days were held in the first place, Laane said the decision was made last year after 10 percent of the agency's employees were laid off due to budget cuts.

"As a result, we are now in a situation where we have been cut down so much that there's no one to fill in if someone drops out or takes extended leave," he said.

"So we agreed collectively that, since last year we ultimately saved €860,000 in operating expenses and did not pay additional bonuses to staff, we could spend time together as a team this summer. And those reservations were also made last year. In the end, it's the people who make the Health Insurance Fund, because without our 200 people, the value of the Health Insurance Fund is not very great."

Event cost

It is not yet known how much the event cost, but the director denied it was as much as the media is reporting.

"We do not know the exact amount yet, and the figures that the media has floated— those six-figure sums... The actual amount is smaller, and I believe we will have all the invoices compiled by Friday, and then we can share the number. It is definitely tens of thousands of euros less than the figure the media has speculated," Laane said. "It is definitely, definitely under €100,000."

Public sense of justice

Laane said he regrets if people are offended by the party.

"I am truly sorry if people feel bad because the Health Insurance Fund staff came together once during the summer after years of intense work. I sincerely regret that," he told the show.

The issue will be discussed at the next board meeting at the end of the month.

"We will also talk about how to find the right balance. On the one hand, having motivated employees who dedicate not only all of their working hours but also much of their free time to improving healthcare in Estonia, and on the other hand, how exactly that motivation should be maintained," he said.

The official also denied that he lived in a "separate world" when asked by "Vikerraadio" if he understood why readers may be angry.

"I understand very well that public expectations are clearly that public sector employees work for their agreed-upon salary, put in maximum hours, and give their utmost effort. That I have understood perfectly well," Laane answered.

Political games

The Health Fund director also suggested that the story was one-sided and that there was a possible agenda behind the coverage. He said journalists should request data from other state agencies and ministries about their summer parties.

"Maybe there's some political agenda behind it, I don't know, that is known by those pulling the strings. But we will draw our own conclusions from this," Laane said.

Asked who could be "pulling the strings," he said: "I cannot say, because this is not the first time we have been used as a pawn in political games. It is definitely not the first time."

Avoiding the media

Laane denied he had tried to dodge commenting on the issue to the media, saying the press had "exaggerated a bit in some areas."

"I have personally communicated with three major media houses, three major outlets – both with their editors-in-chief and their journalists — and we have a very functional working relationship. But when someone shows up unannounced with a camera and starts calling colleagues one by one, I do not think that is good journalistic practice. In this case, with certain journalists, I think both sides can take a look in the mirror," he told the show.

Resignation

Asked if he had considered resigning, Laane said: "In general, stepping down is a very serious decision and it needs to be discussed thoroughly. We will talk about it within the supervisory board. These kinds of decisions should not be made hastily or in the heat of the moment."

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