Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

There was a question on health expenditure. By this year we will be spending €3,200 per head on health expenditure. This is a 5.4% increase above our highest ever point before that in 2009. Not only is health expenditure at its highest ever level; in per capitaterms it is higher than where we have been before. At €14.1 billion, the allocation is the highest that has ever been made to the health sector. Where is that figure going? It is delivering a 10% increase in the number of people employed in the health service compared with where we were during the crisis period.

Those are the figures in regard to what is happening with health expenditure. It is the highest in terms of gross expenditure and the highest in terms of per capitaexpenditure, which I believe is a more appropriate way to measure these matters here in Ireland.

In regard to how we are looking to deal with capital expenditure, the Deputy is correct about the array of competing demands. There is a whole array of agencies, stakeholders and interests across the country that are looking for additional capital expenditure. The Deputy mentioned two of them and I mentioned the HSE. In regard to housing, we have allocated an additional €2 billion in health expenditure. He did not touch on transport, on arts and heritage, on sport or on all the other areas that are competing for this funding. The reason we are putting in place a capital review is to look at what choices we can make to expand capital expenditure and, within all that, see who would be the beneficiaries of it.

What I would say is different to what the Deputy has said is that, first, we need to pay for everything we commit to and, second, I believe we should move away from the approach of comparing the cash amount we are putting against capital expenditure with where we were at the peak, and instead look at what we want to get in return for it. The capital plan we have outlined up to 2021-22 looks to increase capital expenditure as a percentage of national income up to 3.8% to 4% of national income, which is in line with the 50-year average for the country and in line with where many of our peer economies are at the moment.

In regard to public sector pay, the Deputy said it is not about the rights and wrongs of policies. What it is about is making what are difficult choices that are not without risk, and trying to make a choice that gives the best possible prospect for us for 2017. That is what I have done and why I am here today to be accountable to the committee, as I will be. In all my considerations, at no point was I looking to be disrespectful to the Oireachtas or the committee. I believe it was appropriate that we made a decision at the start of this year. Across this year, through the various tools that are available to me, I will do everything possible to ensure the funding is put in place to do this while delivering against the other commitments we have.

I agree that €120 million is a very significant amount. Alongside that, however, it is 0.2% of what we have allocated for all expenditure within the State. What I have judged would pose an even greater challenge to public service delivery in the second half of this year is the disintegration of a collective approach to public pay. That is why I made the recommendation that was accepted by Cabinet. While the Deputy is pointing to the difficulties, in the interests of balance we should make reference to the statement that was issued by ICTU today and the commitment it has made to the maintenance of the Lansdowne Road agreement.

In regard to equal work for equal pay, we will be looking to address such matters in the context of the Lansdowne Road agreement and what will replace it. We will begin work on that, I hope, in the second half of this year. I have two concluding points in this regard. First, workplaces all over the country have employees who have different terms and conditions and different levels of salary, depending on the point at which they joined that workplace and the health and financial viability of their employer. To make a big change in that regard is something that will have consequences for everybody else who joined the public service, not just teachers. The only way the Government can deal with such a matter is in the collective approach to public pay that I am trying to maintain. I would hope the Deputy also recognises the agreement we did make with the INTO and the TUI that made progress in dealing with the issue of new entrant pay for teachers, and was recognised as such by the INTO and the TUI.