Enda Kenny (Mayo, Fine Gael) | Oireachtas source

-----recognises that workers in the public service who perform their duties are entitled to be paid. The Deputy walked out of a meeting yesterday at which this could have been arranged. The Government has set out in its fiscal plan the savings required to be achieved this year. These savings, as set out in the Revised Estimates for the Department of Public Expenditure and Reform, are apportioned across all Departments. That is the reason the Estimate is before the House. This is normal procedure in the workings of government. The discussions and negotiations that took place were the most extensive, comprehensive, open and - I dare say - truthful expression of the facts of financial life in this country. From a Government perspective, the proposals on the table as put forward by the Minister through the Labour Relations Commission are fair and equitable. The core salaries of 87% of public sector workers earning below €65,000 per annum are not touched. It is important that the Deputy understand we are borrowing more than €1 billion every month to pay salaries in the public sector.

The Deputy mentioned individuals in the banks. I remind her that the contract for the bank in question was negotiated by a Fianna Fáil-led Government and that this Administration on taking office put in place a cap on bankers' salaries, which nobody has since breached. I further remind her that the Government, as part of its programme for Government, asked that an analysis be carried out of bankers' pay. This analysis was conducted by Mercer and the findings were reported to the Government. The Government, in its engagement with the banks, recommended a reduction in banks' pay and pension scales of between 6% and 10%. The Minister for Finance expects that this recommendation from the Government will be responded to by the banks in the next two weeks. My understanding is that it will include a substantial contribution from the leadership of the banks on pay and pensions.

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