Brian Lenihan Jnr (Dublin West, Fianna Fail)

As I stated in the Budget Statement, the policies set out in the joint programme of assistance closely reflect our national recovery plan. The programme sets out key points where the Government will assess the delivery of its current policies as set out in the plan to ensure they are achieving the savings and adjustments necessary to help restore the country's budgetary position, building on the significant savings already achieved over the last two years. The Government proposes to meet its target for further reductions in the cost of delivery of public services through planned reductions in the number of public servants and through greater efficiencies in the way public services are delivered. The savings targets for 2011 are set out in the budget Estimates and now form part of the allocation for each Department and agency over the coming year. These savings targets are based on an overall reduction of public service numbers to 301,000 by the end of 2011 and other savings to be realised through a range of efficiencies and reform measures, including those set out in the Croke Park agreement. The agreement will allow the necessary changes to working practices to be made to enable priority services to the public to be sustained in a period of reduced resources.

The EU-IMF programme of financial support for Ireland states that by the end of the third quarter of 2011, the Government will consider an appropriate adjustment, including in the overall Public Service wage bill, to compensate for potential shortfalls in the projected savings arising from administrative efficiencies and public service number reductions. Prior to that, and in accordance with a commitment under the Croke Park agreement, the first annual review of the position concerning public service pay and the sustainable savings arising from the implementation of the agreement will be undertaken. That review will be based on the same quarterly data on the public service wage bill and the number of employees as will be provided on a quarterly basis under the joint arrangement. There is therefore a synergy between the plan and the agreement. The reviews under the agreement will demonstrate clearly whether it is delivering savings in the costs of public service delivery, primarily through reductions in public service numbers, with the related changes in working practices necessary to ensure that priority public services can continue to be sustained or improved. In the event that the necessary sustainable savings are not being achieved, the Government is of the view that further cost saving measures will be necessary to achieve those reductions. A number of options would be available to the Government in those circumstances to reduce the cost of the overall pay bill.

In that regard the main commitments the Government gave under the agreement, namely those on pay rates, job security and superannuation entitlements, do not apply to any public servant which is represented by a union or association that has not accepted the agreement. Any union or association in that position should now give careful consideration as to whether it is best representing the interests of its members in adopting that approach.

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