Dáil debates

Tuesday, 28 May 2013

Financial Emergency Measures in the Public Interest Bill 2013: Second Stage

 

7:05 pm

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

It may be possible but the Government's approach has been to deal with the issue on a piecemeal basis.

As the legislation proceeds, I hope to elicit further information on the savings it is proposed to make under the Haddington Road agreement. Last Thursday, during Oral Questions, the Minister indicated he would provide figures on projected savings. The new agreement adjusts the previous Croke Park II agreement. For example, the latter proposed to save €65 million by reducing Sunday premium payments. This target will not be achieved because the Government agreed to make significant changes and concessions. This was a correct decision as it was unfair to target front-line workers.

I would like the Minister to provide costings for some of the other areas of savings. The Government has an overall target of achieving savings of €1 billion by 2015. Will the Minister spell out the savings that will be achieved under the Haddington Road agreement and the additional savings it is proposed to achieve through other measures? Some of the most significant savings to be made by 2015 will be achieved through a targeted redundancy programme. Reference has been made to reducing headcount subject to Government action. The trade unions have not signed up to any such measures. Notwithstanding the Minister's statement about ensuring all measures are achieved through co-operation and agreement, the Government proposes to make unilateral decisions to reduce public sector numbers from 290,000 to 282,500 by next year. From 2015 when public servants receive their lump sums and start to receive their pensions, the public sector pay bill will logically reduce. What will be the precise savings generated by this measure?

The early retirement scheme introduced in 2012 should also deliver some further savings in 2013 and 2014. Will the Minister indicate what savings will be achieved through retirements in the normal course, as occur in all organisations? The Government has set a date of August of next year by which it hopes to encourage public servants to retire. What savings will be generated from the recruitment embargo in place in many parts of the public service? I am aware that teachers and health staff above nursing grade, including doctors and consultants, are exempt from the recruitment embargo. It is important that we find out what savings will be generated by the Haddington Road agreement as well as from other measures being taken by the Government. I expect that combined these savings should add up to the €1 billion target. It would be useful to find out what savings will be generated and from where.

As I indicated, the inclusion in the Haddington Road agreement of measures on public service pensions is a major issue. The matter was also included in the Croke Park II agreement. Paragraph 2.27 of the new agreement states:

Separately, to this Agreement, the Parties note that the Government intends to align the reductions in public service pensions in payment with the reductions applied to serving staff. The Parties note that this measure will apply to pensions in payment greater than €32,500 only.
It is clear from this reading that this measure will be implemented separately from the agreement. What savings will be achieved from the proposed cuts in public service pensions?

I do not propose to repeat the Minister's speech, the gist of which was that he would not do as my party did in government when we made unilateral changes to public service pay, income and remuneration without consultation with the relevant bodies. He is doing precisely that in respect of public service pensions. The decision to exclude public service pensioners from the talks on the Croke Park II agreement caused great anger. Representatives of public service pensioners requested meetings with the Minister and his officials but were refused. They also wanted to be involved in negotiations on the Haddington Road agreement because they knew it would make reference to public service pensions. In response to a number of questions I tabled on this matter in recent weeks, the Minister indicated arrangements would be made for his officials to meet representatives of the Retired Civil and Public Servants Association or its constituent bodies. Now that the agreement has been published and emergency legislation is ready to be forced through the Dáil, the Minister has indicated he will speak to the representatives of public service pensioners. I do not know what he will discuss with them as he has done the dirt on them without first speaking to them.

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