Brian Cowen (Laois-Offaly, Fianna Fail)

Pay and pensions comprise a very considerable proportion of total public expenditure, as I have outlined in broad terms. The severity of the funding crisis has already brought about a reduction in the numbers employed in the public service. With colleagues retiring and taking career breaks, and with the moratorium on recruitment in place, there is wide recognition among staff and their representatives that the manner in which the public service conducts its business must be changed, with the further impetus to seek greater flexibility and productivity in all areas.

The public service is no different from its private sector counterparts facing a crisis in their business. In the private sector we have seen pay levels, pension arrangements, work practices and working patterns and hours featuring as part of the solution as employers, employees and union representatives work together in seeking to retain jobs and avoid redundancies. The same is true of the public service. Public servants have also experienced significant change in their net incomes as a result of the introduction of the pension levy. I acknowledge that public servants at all levels have already demonstrated a capacity for change. I believe staff can respond positively and with flexibility to the continuing challenge of managing our way through the current economic difficulties.

There is a willingness by Government to engage at national and local level to bring about the changes that are needed. The Government, as employer, must look at all the options which would minimise the impact on public services and public service jobs of unavoidable spending reductions.

We have an objective. We signalled on a number of occasions that the pay and pensions Bill must be part of the equation. We want to give our assessment of that and hear people's constructive views on how it might make a contribution to decisions. The Government must reserve its position as an employer until it is clear how that contribution will manifest itself.

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