Brendan Howlin (Wexford, Labour) | Oireachtas source

It might be useful to put on record figures from the Central Statistics Office, CSO, that were published yesterday. They indicate that the average private sector wage in the State is €32,670. The threshold for the pay cut I propose is hence double the average private sector wage. As I have stated privately to Deputy Boyd Barrett, it is getting harder to get into the working class under his definition.

The €100,000 threshold proposed by those opposite would obviously yield very little money. We priced Deputy Boyd Barrett's group of amendments and they would reduce the quantum of money we would get by 60%, so they would not make the savings we require to bridge the gap. They would fall very onerously on some groups of public servants, and Deputy McDonald is correct in mentioning hospital consultants in that regard, as well as the Judiciary.

I have given very careful consideration to Deputy Fleming's amendment because there may be an idea that there is merit in going higher on the very highest earners. It does not get much money, as the Deputy recognises. The Government has indicated its intention to reduce the pay of higher-paid public servants as part of the measures we have set out to get €300 million in reductions in pay and pensions this year. I know Fianna Fáil sought €350 million in reductions in its pre-budget submission. These reductions form part of the measures needed to meet our requirements in all our international agreements to reduce the deficit to 3% of GDP, as we cannot keep borrowing and piling up debt for the next generation. The reductions in pay set out were formulated to protect the basic pay of not only lower but middle income public servants, as acknowledged in the discussions we had. We are looking to employ a progressive reduction based on earning bands greater than €65,000.

The reductions proposed in the Bill are also in line with the set of proposals brokered by the Labour Relations Commission and set out in the Haddington Road agreement. With regard to the imposition of a significant increase in the reduction in pay to be applied to those earning in excess of €200,000 - Deputy Fleming calls for the rate to be increased from 10% to 20% - I do not consider it proportionate or equitable to target that narrow group in the architecture of this legislation. I have given very careful consideration to the matter. I have taken legal advice on these matters.

This is a judgment call and the reality is that the enactment of the Financial Emergency Measures in the Public Interest Bill and retirement of a number of senior public officeholders has already resulted in a significant reduction in the public servant pay. People speak about gross terms and they may not be aware of the following figures. I will put on the record the impact of what we have done as a Government with regard to officeholders. People had to think long and hard about this. In 2009, the previous Taoiseach, former Deputy Cowen, earned €285,583.

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