Eamon Gilmore (Dún Laoghaire, Labour) | Oireachtas source

The Minister for Public Expenditure and Reform, Deputy Howlin, conducted an extensive review of allowances across the public sector. In many cases, these allowances were historically granted in lieu of pay increases and now form part of core pay. Cutting core pay is not compatible with the Croke Park agreement. What the agreement has demonstrated is there is more than one way to reduce the public sector pay bill. By the end of this year, the public sector pay bill will have been reduced by €3.1 billion. As of last March, there were 28,000 fewer public servants than at the peak in 2008, yet front-line services continue to be delivered for more people as there are more schoolchildren, more hospital patients and more clients of social services.

The Minister has asked the individual Departments to pursue the elimination of allowances with their respective staffs. Up to 180 allowances will be discontinued for the future. Departments have been asked to examine existing allowances. The procedures to be followed will be the industrial relations ones that come within the terms of the Croke Park agreement. As I said, €3.1 billion in savings has already been achieved using the Croke Park agreement.

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