Brendan Howlin (Wexford, Labour) | Oireachtas source

To achieve the general Government deficit target of below 3% of GDP by 2015, all components of the public finances must make a contribution. I have acknowledged repeatedly that public servants have made a significant contribution to the fiscal recovery of the State through a number of measures which have helped to reduce the public service gross pay bill from its peak of €17.5 billion in 2009 to an estimated €13.63 billion, net of the pension related deduction, in 2014. In this context, reducing the Exchequer pay bill has been an important element in reducing public expenditure. While unprecedented efforts have been made to reduce the cost of the public service pay bill since 2009 through the operation of the financial emergency legislation and other measures, pay costs still amount to 29% of all current expenditure.

The Haddington Road agreement, which came into force on 1 July 2013, included a number of measures, including pay reductions for those public servants on annual salaries in excess of €65,000 under the financial emergency measures in the public interest, FEMPI, legislation. These measures provided for a reduction of the public service pay and pensions bill by an additional €1 billion by 2016.

It is a three-year agreement covering the period to the end of June 2016 and forms the basis for current public service pay policy over that period. Through its provisions, the agreement is also delivering an unprecedented structural increase of almost 15 million additional working hours annually to be deployed for the benefit of the people of the State. The productivity is contributing to the maintenance of our public services at a time of significant restraint.

Under section 12 of the Financial Emergency Measures in the Public Interest Act 2013, I must review the Financial Emergency Measures in the Public Interest Acts 2009-2013 annually and cause a written report of my findings to be laid before each House of the Oireachtas. As part of that review I am required to consider whether the measures continue to be necessary, having regard to the purposes of the legislation. My next such report will be laid before the Houses of the Oireachtas on 30 June 2014.

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