Brendan Howlin (Wexford, Labour) | Oireachtas source

I propose to take Questions Nos. 6 and 150 together.

Negotiations have taken place between public service employers and the public services committee of the Irish Congress of Trade Unions on the Government’s stated intention to reach agreement on securing an overall saving of €1 billion gross in the public service pay and pensions bill by 2015. Following intensive engagement in recent days between the parties which was facilitated by the Labour Relations Commission, the LRC has developed and recommended a set of proposals for consideration and agreement that seeks to secure the €1 billion gross savings required by the Exchequer, while ameliorating the impacts on public service staff, particularly those on low and middle incomes to the greatest extent possible.

There are three broad strands to the LRC proposals published yesterday which seek to secure agreement on savings and a more long-term structural reform approach to the public service. The proposals include productivity measures - extra hours, standard extended working day, standard extended working week and flexible rostering; workforce reform measures - changes in performance management development systems and flexitime, streamlining management structures and spans of control; and cost reduction measures - reduction in non-core pay rates, increments, overtime, premia and so on. As I said, the full details are published on the LRC website.

The precise implications of the savings package on tax and related revenues, both in direct terms and indirectly through effects on macroeconomic variables, are matters that will fall for consideration by my Department and the Department of Finance in the context of preparing the economic and budgetary strategy for 2014 to 2016. The detailed information sought by the Deputy is not available. However, I am satisfied that, subject to its ultimate acceptance and the necessary legislation being passed by the Oireachtas, the proposals available to public sector workers will produce the necessary savings of €1 billion over the lifetime of the agreement.

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