Brendan Howlin (Wexford, Labour) | Oireachtas source

I propose to take Questions Nos. 1 and 2 together. This afternoon, I published the proposed Financial Emergency Measures in the Public Interest Bill 2013 and the Bill is scheduled to come before the Oireachtas on Tuesday. The primary purpose of the proposed legislation is to implement the proposed pay reduction for public servants earning annual salaries of €65,000 or more and the parallel reduction in public service pensions over €32,500. Contingency measures to be deployed to secure reductions in the public service pay and pensions bill are also included, including provision for a universal freeze on pay increments. The legislation will also provide a facility for unions and representative associations to conclude collective agreements with their public service employers, which will avoid the need for those contingency measures to be used.

Amended proposals for collective agreements were brokered by the Labour Relations Commission in discussions between the parties on terms and conditions of public servants, which concluded on Monday morning last. I pay tribute to all those involved in the discussions, particularly the officers of the Labour Relations Commission, led by the chief executive Kieran Mulvey, the unions and their representatives, representative associations and public service employers, for their expertise and engagement on what was a very difficult agenda for all concerned.

The Government recognises the savings sought from the public service pay and pensions bill are extremely difficult and challenging for all public servants. The Government is conscious of the significant contributions made to the recovery of the State by public servants. They are a necessary further contribution to the fiscal consolidation process required to restore our economic sovereignty and bring our current expenditure deficit under control. It has also always been the ambition of mine, and the Government, to have an agreement on achieving the savings with our employees and their unions. If these proposals are accepted, achieving the required savings and major increases in public service productivity to secure the necessary reduction in the public service pay and pension bill will be possible. The essential elements and protections of the Croke Park agreement will remain in place. Industrial peace in the public service can be secured at a critical time on our path to economic sovereignty.

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