Oireachtas Joint and Select Committees

Wednesday, 17 October 2012

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Public Expenditure and Reform Vote: Discussion with Minister for Public Expenditure and Reform

5:10 pm

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour) | Oireachtas source

That is the additional cost. I should advise the committee on the matter as I spoke about it on public radio. We had a discussion on the issue last week during Question Time when Deputy Fleming in particular made a reasonable request about whether I had investigated stopping increments for those earning more than €100,000. I did consider that. As I indicated, the bulk of increments are paid to low-paid public servants within the Civil Service, 50% or slightly more are paid to clerical officers who are not well paid. The nature of increments is that they are paid to the entrant’s grade whether it is to the Garda or teachers. Increments are for those who start off on the lowest grade. That would not be the place to start in order to make savings but at a higher level one could make a justification for it. I asked for the advices of the law officers of the State on the feasibility of doing that. It would not make much sense targeting people earning more than €100,000 in terms of the quantum of money involved. The clear advice I had is that increments constitute basic pay and represent part of the terms and conditions applicable to staff. Pay scales form part of the public announcement of the terms and conditions for recruitment purposes or when promotional competitions are run within the public service. Increments are awarded as part of pay for pension purposes and therefore their suspension or alteration would have a long-term impact. In essence, the only way one could remove increments would be by agreement or by legislation. The latter would be open to challenge in terms of contract law.

On the stimulus package and where that sits-----

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