Dáil debates

Wednesday, 29 May 2013

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

 

5:00 pm

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour) | Oireachtas source

There is neither respect for the Chair nor the House from some people.

Deputy Fleming posed a valid question. He wanted me to define whether there is still an emergency in order to justify the Bill. In the Bill I amalgamate the requirements - this will be the fifth financial emergency measures in the public interest, FEMPI, item of legislation - to bring a report to the House to identify that the conditions that justify the maintenance of what are extraordinary measures still exist, that is, that we need these measures to contribute to the recovery path of our economy, to put our fiscal base in order and to ensure we have sustainable finances. That will be done on an annual basis, as is normal. Instead of individual ones for each Bill, if this legislation is enacted there will be one comprehensive report, and it will be a matter for the House to debate, if that is what Members want, in terms of whether the emergency continues. I deliberately chose to put these measures in FEMPI legislation rather than in an ordinary piece of legislation because I recognise that FEMPI Acts are not normal, they are required to contribute to the financial emergency we are experiencing, and they are not permanent for that reason. They need to be unwound at some time when the economic circumstances of the State allow it.

Deputy McDonald spoke about pay inequality. There is one pay cut in this Bill, and that is for people earning in excess of €65,000. That is 13% of the public service. Some 87% of the public service earn less than that, and there is no cut to their core pay in this set of proposals. That is the reality.

I have debated this many times with Deputy McDonald and her general contention is that we should have a flat ceiling of €100,000 in the public sector, and that nobody should be paid more than that. She never explains whether that should scale down or whether there should be any differentials at the top - the old trade union principles of differentials. However, even that principle has been breached in the amendments she has tabled to this Bill because she is determined that, uniquely, hospital consultants should be paid €150,000, not €100,000. We are now moving into a different realm because it has finally dawned on Deputy McDonald that the flat blanket ceiling of €100,000 would destroy our health services for a start, as I explained several times. I am not sure that it would not have the same impact on the Judiciary and everything else.

Deputy McDonald spoke about crafting the legislation. That is a good word because this legislation is crafted to reflect what is a brokered deal that we now call the Haddington Road agreement. That has taken place after five months of engagement with all trade unions that came to the table, and all eventually did.

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