Mr. Robert Watts:

Yes. We will get there by the end of next year or 2015 and the saving will be made on a recurring basis annually. Savings were identified for 2013 and further savings will be set out in the Estimates in the next ten days. The Estimates will set out pay allocations across all of the Votes and sectors which encompass the changes and measures in the Haddington Road agreement, and they will make up the best part of the aforementioned €1 billion. The pay allocations will be set out for each sector and Vote group and it will be up to Departments and State agencies to deliver on the measures.

Haddington Road is different from Croke Park in a number of respects. The latter enabled change in a different industrial relations environment. It did not attach costings or savings to specific items, however. Haddington Road sets out specific changes with which cost savings have been associated. These include the pay cut, the freezing of increments, the changes in overtime rates and the abolition of a number of allowances. The vast majority of savings are based on specific measures, most of which we have implemented or are in the process of implementing. Other elements involve harvesting the 15 million increase in hours across the system.

The savings from that will lead to reductions in overtime and agency workers and facilitate further downsizing of the public sector. I am happy to give the specific details if the Deputy wishes. The full-year saving from centrally-driven measures such as pay reductions, increment deferrals, pensions, travel and some other measures is €340 million. Some €210 million of that is accounted for by the reduction in higher salaries over €65,000, which came in from 1 July this year.

There are savings of €430 million from productivity changes and they relate to reductions in overtime and the overtime rate. The overtime rate for public servants who earn less than €35,000 now goes to the first point of the scale while the rate for those who earn more than €35,000 is now time-and-a-quarter. The fact that we have more hours means there is less overtime. There are savings on agency workers, mainly in the health system which relies a lot on agency employees. The increase in hours worked by nurses from 37.5 to 39 will reduce the demand for agency workers. Those measures on overtime and agency work save approximately €130 million. Supervision and substitution in education saves approximately €125 million and the reduction in staff numbers saves €150 million to €175 million.

There are other specific measures for sectors. Members will remember the deal which became very complex, particularly the second iteration which had specific deals in each of the sectors such as local authority, the Garda Síochána and health. A variety of productivity changes there will lead to savings of more than €200 million. The vast majority of that €1 billion will be saved by the end of 2014 and the pay allocations will be set out in the Estimates which the Minister will present to the House in ten days' time.