Brendan Howlin (Wexford, Labour) | Oireachtas source

I thank the Deputy for the question. The Government has accepted my proposal to amend the Financial Emergency Measures in the Public Interest (No. 2) Act 2009 by the deletion of section 2B, which was inserted into the Act by section 2 of the Financial Emergency Measures in the Public Interest Act 2013. Section 2B provided that existing powers under any other enactment could be exercised to reduce non-basic pay - premium and overtime rates - or increase the working hours of individual public servants. This was a limited contingency measure whose effect was confined to confirming that existing powers to make changes to working time and remuneration rates other than basic pay may be exercised to effect less favourable terms if required to secure necessary savings in the public service pay bill. The provision was regarded as a necessary backstop to enable measures to be taken, in the absence of agreement with employees, to secure the absolutely required savings.

As the Deputy will be aware, rather than acting unilaterally to reduce pay as its predecessor did, the Government chose last year to continue to negotiate with public service unions. As a consequence, we were able to reach an acceptable agreement which provided not only a basis for savings in the public service pay and pensions bill of up to an additional €1 billion in the period to 2016, but a way to address all matters relating to working hours and non-basic pay.

The powers provided under this section did not need to be exercised and were not exercised, and the requirement to have the powers on the Statute Book, in my view, has now passed.

As I said in my reply to Deputy Sean Fleming, I am committed to keeping the emergency legislation under general review, which is important. Because there is such concern among public servants generally and their representatives about this power it is appropriate to delete it, now that it is no longer required.

As regards future negotiations with public service trade unions, I have stated the Government's position is that the Haddington Road agreement will last until 2016. The cost reductions, productivity increases and the reform dividend which allow me to recruit new front-line staff continue. This demonstrates that the agreement is delivering and making a significant contribution to the achievement of the fiscal consolidation target as we work to achieve a deficit below 3% of GDP by 2015.

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