Written answers
Tuesday, 20 June 2017
Department of Finance
Public Sector Pay
Pearse Doherty (Donegal, Sinn Fein)
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326. To ask the Minister for Finance if the recently agreed public sector pay deal will be counted as investment in public spending under the confidence and supply agreement that there will be a two to one ratio between investment in public spending and tax cuts; and if he will make a statement on the matter. [28685/17]
Paschal Donohoe (Dublin Central, Fine Gael)
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On the 8 June 2017, the terms of a proposed agreement was reached between the public service unions and public service management officials representing the Government, regarding an extension to the Lansdowne Road Agreement.
If the proposed agreement is ratified by the unions and representative associations for public servants, then the expenditure will use fiscal space. However, I should point out that the confidence and supply arrangement specifies that the ratio in favour of expenditure is "at least" two to one. The Government will decide on budgetary policy for 2018 in the context of Budget 2018.
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