Brian Cowen (Laois-Offaly, Fianna Fail)

Our position on the Croke Park agreement has not changed and we are keen to see its accelerated implementation. It is on the basis of getting the changes envisaged by the full implementation of the agreement that we have been able to give our commitments. Our commitments are given in the context of full implementation. In the absence of full implementation, the ability of the Government to fulfil its side of the bargain is more difficult. The scale of change in a system of more than 300,000 people requires agreement and leadership at all levels. This is the significance of the agreement. It is based on shared principles and specific, agreed commitments.

People seem to have forgotten that the Croke Park deal was negotiated against a background of escalating industrial action and the agreement put an end to that. By accepting the Croke Park agreement, public servants have accepted the imposition of a pension levy and pay cuts resulting in an average, combined reduction of 14% in pay. It has resulted in an estimated annual pay saving of €1.8 billion. The agreement provides for an effective freeze in pay up to 2014.

There has already been a reduction of approximately 12,000 in public service numbers since the end of 2008. In line with the national recovery plan, there will be an overall reduction of almost 25,000 by the end of 2014 from the end of 2008 base level. In contrast with the experience in other countries, where less severe reform measures have been pursued, there has been no industrial unrest. We have managed service continuity, which is especially important to the most vulnerable in our society. The reduced numbers mean there has been increased productivity throughout the public service as well as a reduction in the public service pay bill. Therefore, we are getting more work for less money and this will continue. Changes in work practices will also lead to reductions in the cost of overtime and other forms of variable pay. Unions have agreed that services can be restructured, work locations can change and services to the public can be offered over longer periods. New technology will be employed to deliver services in better ways to the public. Staff may be redeployed to the areas where they are most needed. As we identify areas of lower priority and reduced demand we can redeploy people smoothly to new and higher priority tasks within their organisations, into other organisations and other parts of the public service.

Given our serious financial situation we now have fewer organisations, fewer people, who are paid less and whose pension arrangements are changing. This has been achieved by agreement without major industrial disputes which would have damaged our reputation or impacted on the most vulnerable. There is a promise of more change to come in terms of a further reduction in numbers and greater flexibility, redeployment and substantial new work practices. The public service unions accept that the guarantees the Government has given in respect of avoiding further pay reductions and compulsory redundances are dependent on full co-operation and flexibility being shown across the board.

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