Brendan Howlin (Wexford, Labour) | Oireachtas source

Inserting the new section 2B into the parent Act means that an existing power to fix terms and conditions may be exercised by the relevant employer or Minister of the Government so as to result in less favourable remuneration other than core salary, which is unaffected by the power, or in increased hours for the public servants concerned, notwithstanding any of the terms of any enactment, contract or otherwise provided for. This provision will not apply to any group of public servants for whom remuneration is set by primary legislation, such as the Judiciary. I wanted to make that clear, although it is dealt with in the explanatory memorandum.

The new section 2B is a necessary provision to provide alternative means to secure the necessary savings in the public service and pensions bill that we have set out. We require €300 million this year and €1 billion by 2015, as we have said. The overall ambition of the Government is to secure these savings by way of agreement, and that is why we spent five months in negotiations with all the public sector unions. The proposed Haddington Road agreement is the fruit of that labour, negotiated freely between public service employers and public servants through the Labour Relations Commission. Section 7 reflects that an increment freeze can be avoided through a collective agreement between public service employers and employees. It is through the collective agreement provided under this process that the Haddington Road agreement can be implemented between parties.

Section 2B is a limited contingency measure confined to confirming the existing powers to make changes to working time and remuneration other than basic pay, which is not being amended. In practice, it will be exercised by a line Minister such as the Minister for Health or the Minister for Education and Skills and authorised by the Minister for Public Expenditure and Reform.

Amendment No. 29 is inconsistent with the terms of the section and it cannot be accepted as it refers to a pay reduction. It is also unnecessary, as implicit in the powers available under section 2B is the option to exercise the power for different employees or groups of employees differently. I do not believe the existing provisions and powers relating to terms and conditions as modified and provided for in this section would benefit from being exercised by regulation rather than required under existing legislation. For the information of the Deputy, the process will of course be in public and there is no question of a secret agreement being made. If terms and conditions are to be changed, the workers directly involved would know and there is no reason for such a secret to be held. There is no difficulty with that element of the Deputy's concern.

Amendment No. 61 seeks to amend section 8, which provides a power for the Minister to exempt individual public servants or groups from the increment freeze on limited or exceptional grounds. The amendment seeks that this power should be exercised by regulation rather than direction but given the limited power and the narrow legislative parameters in which it will be exercised as set out in the legislation, I am not persuaded that regulation rather than direction, with the attendant policies and principles as set out in the Bill, is required or appropriate.

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