Martin Mansergh (Tipperary South, Fianna Fail)

As someone who entered the public service in 1974 and who worked alongside civil servants up until 2002, I have strong reservations about the whole concept and applicability of performance related pay as applied to the senior Civil Service to date and the concept of tracking the private sector. It proved difficult to distinguish exceptional performance and the 10% became embedded in pay. The Minster has abolished the performance related pay scheme as unaffordable at present, but it never worked originally as intended. However, in my experience, for the record, assistant secretaries and deputy secretaries, without prejudice to those who work above or below them, are at the cutting edge of policy execution.

A passage that appears to have been overlooked in the most recent report No. 44 states:

We recommend that, in the event that any anomalies arise in the implementation of these recommendations, the Department of Finance should have the discretion, in consultation with other relevant departments and agencies, as necessary, to make such adjustments to our recommendations as may be required to remove any such anomalies.

The legislation in December gave the Minister such powers. He is, therefore, acting in line with the report, not ignoring it, as has so often been alleged. The table circulated by the Minister for Finance yesterday demonstrated clearly the major impact on net pay of budgetary decisions since 2008. With the exception of a few Secretaries General, net pay for all senior civil servants has fallen well below €100,000, with losses of 24% to 27% in the categories in question. The system as it stands, even with the correction of the anomalies, is sharply progressive and there is no justification for claiming they have been spared far more than junior civil servants.

The Government recognises that the pay cuts applied to all public servants are onerous and difficult. They were not undertaken lightly but they are absolutely necessary. I would suggest that they must be considered in the context of the magnitude of the adjustment and contribution required from all those in our society, including social welfare recipients; the fact that the reduction of 5% in the consumer price index over the 12 months to December 2009 offers at least some mitigating effects; the devastating effect of the recession on jobs and incomes in large swathes of the private sector; and the current serious threat to European economies that do not demonstrate their determination to put their houses in order.

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