Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

It is true it was cut, but these cuts have continued in a progressive and proportionate way. It is right and proper that those who have most are burdened most in the adjustments. The measures in the Bill mean the Taoiseach's salary will go from €185,000 to €167,000. We have gone from a salary under Fianna Fáil of €310,000 to a salary of €167,000 in a short number of years. This is what I call leadership.

A number of Deputies raised the issue of the lack of consultation with public service pensioner groups about the introduction of revised public service pension reduction, PSPR, measures. It is worth pointing out when the first PSPR was introduced on 1 January 2011 there was absolutely no consultation with any pensioner groups and the measure was introduced unilaterally. On this occasion the Minister, Deputy Howlin, has introduced a further PSPR measure which will impact on less than a quarter of public service pensioners and the Minister and officials have met the Alliance of Retired Public Servants. He felt it was very important to show them the courtesy of meeting them to listen to their very genuine concerns and explain to them why, in the interests of equity, it was necessary that a further contribution would be sought from higher paid pensioners. As the Minister explained to them, it gives the Government no pleasure to have to take these measures, and we would all genuinely wish economic circumstances were otherwise, but the reality is the Government must take steps to ensure the economic survival of the State and this impacts throughout society. The additional reductions of between 2% and 5% could not be regarded as excessive, particularly at the lower bands.

On the question of representation, the Minister indicated to the Alliance of Retired Public Servants there would be advantages for public service pensioners and the Government to having a formalised structure, such as the alliance, for ongoing engagement on public service pension matters. I know Mr. Mulvey alluded to this in his remarks over the weekend. Effectively, they were not part of the process because they are not employees of the State; they are pensioners under existing conditions.

On a point of clarification, there was some confusion that the new PSPR rates applying to pensions of €32,500 would also be applied to spouses' pensions at €16,000. This is not correct. The only spouses' pensions that will be affected by these measures will be those spouses' pensions which are themselves over the €32,500 threshold. Retired public servants on a pension of €32,500 will have no reduction. The additional contribution or reduction, call it what one will, only kicks in at €32,500 and is progressive from 2% to 5%.

The issue of targeting gold-plated pensions for very senior former officeholders and public servants was also raised. However, in introducing emergency legislation the Government must ensure the measures introduced are proportionate and reasonable if they are to be deemed constitutional if challenged. I am satisfied the very progressive reductions being sought from higher pensioners meet these legal criteria.

Deputy Fleming also asked for the Government's estimate of when the financial emergency would end. I cannot, unfortunately, guarantee that the crisis will end on a particular day or in a particular month. However, I can guarantee Members of the House and public servants who are being asked for another sacrifice that the Government and the officials in the Department are working hard to bring this day about as soon as possible.

None of us is jumping down the streets with the introduction of this legislation because of the effect it will have, but the fact we have come to a measure of agreement with organised labour in the Irish public sector is an extraordinary contribution by the public service unions of the country and to where the country is right now. These public servants have made an enormous contribution to the rehabilitation of Ireland and we are nearly there. This final piece of the jigsaw, difficult as it is in terms of putting the legislation through Parliament, will not only ensure the viability of the State but, more importantly, the viability and sustainability of public servants themselves and it is in their long-term interest. It is not in the interest of public servants to have an enormous difference between tax and expenditure because we will not be able to afford to pay the pensions they legitimately expect from their working lives. This is about the sustainability of the State, but it is also about the sustainability of public service pay and pensions. I commend the Bill to the House.

See this speech in context