Dáil debates

Tuesday, 24 November 2009

Industrial Action by Public Service Unions: Statements

 

6:00 pm

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)

Tax is one of the major methods of effecting redistribution in any economy. Almost half of earners are not in the income tax net at all. The numbers in the top rate have fallen from 20% to 12%. The numbers at the standard rate are the same. That illustrates a massive reduction of incomes across every sector of society. Tax receipts are coming disproportionately from the higher end.

I agree with Deputy Burton on higher public sector pay. I have received the review body's report which I will consider. It will be submitted to the Government for consideration and the Government will take a decision on publication of the report. Clearly, the report recommends substantial decreases in the payments for top level public servants. The numbers covered directly by the review groups come to about 4,000, if one includes medical consultants who are not the subject of a recommendation by the review body as part of the last general review in 2007, since there were contracts negotiations under way with the consultants at the time.

The numbers covered by the review group are in excess of 1% of the total numbers in the public service. Having said that, it is important that they give an example. I examined a report published by The Sunday Tribune last week which listed high earners in both the private and public sector and it is fair to say that Ministers did not emerge as the most highly paid of the leadership element of the public service. Even with the inclusion of medical consultants, the pay of the groups covered by the review group would represent about 4% of the total public service pay bill.

I note Deputy Burton's request to have the report published in advance of the budget. I will certainly draw that request to the attention of my colleagues when they consider this report, which will occur before any budget day announcement.

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