Brendan Howlin (Wexford, Labour)

I propose to take Questions Nos. 2 and 5 together.

I assume the Deputy is referring to section 1.16 of the Croke Park agreement in Question No. 2 which relates to the statutory requirement under the Financial Emergency Measures in the Public Interest Acts of 2009 to review the operation, effectiveness and impact of the Acts on an annual basis before 30 June. The review also takes account of the sustainable savings generated in the implementation of the Croke Park agreement.

The statutory reviews have been completed and the reports on the reviews undertaken this year were recently laid before the Houses of the Oireachtas in the days leading up to 30 June in accordance with the statutory obligation. In the review of the Financial Emergency Measures in the Public Interest (No. 2) Act 2009 which imposed the pay reduction on public servants with effect from 1 January 2010 I concluded there was a need to continue to apply the reductions in remuneration of public servants, as well as other measures controlling the cost of the public service pay and pensions bill provided for under the Act. Any amendment of pay rates for existing public servants would have to be the subject of separate legislation. I have no plans to review the annual pay caps of €200,000 and €250,000 for the public service and commercial State sector, respectively, which were introduced by the Government in June 2011. Public service pay will, like all other public expenditure matters, be considered in the context of the 2012 budget and the absolute necessity to reduce the fiscal deficit.

The Government has reaffirmed the key commitments in the public service agreement 2010 to 2014 on pay rates and job security for serving public servants. These commitments are contingent on delivery of the necessary flexibility and reforms to public service delivery required under the agreement. The implementation body for the Croke Park agreement is representative of both public service management and staff representatives. Following the recent publication by the implementation body of its second progress report, I will be meeting the body shortly to review the report and emphasising the need for management, staff and their representatives to press ahead with even greater urgency with the delivery of further change under the framework of the agreement.

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