Brendan Howlin (Wexford, Labour) | Oireachtas source

The Haddington Road agreement 2013-2016, which is the second public service pay agreement since 2010, forms the cornerstone of pay policy in the public service until July 2016, when it is due to expire. The focus remains on maximising the provisions of that agreement in relation not only to pay but also to the long-term impact of reform and productivity measures, such as extra working hours and reduced leave entitlements. However, it is prudent now for the Government to start preparing for the period after the agreement in the public service, and, in particular, to ensure there is a phased and structured approach to the reversal of the financial emergency measures, which applied billions of euro of cuts to the public service pay and pensions bill. To that end, I have indicated my desire to enter into a discussion with the public sector unions and associations to develop and agree an approach to that issue.

At a minimum, my preference is to have the first quarter Exchequer returns for this year available to me to put in context the capacity we have for these talks. Any such discussions on pay or other matters will, of course, take place in the context of the State's fiscal position and the pace of financial recovery for this year and next. It is important that expectations on all sides in regard to any discussions on the review of pay rates and other reforms are realistic. Having worked over the last four years to restore the health of the public finances, the Government is determined that any outcome of discussions with unions is consistent with our overall fiscal position. The current financial stability, which was hard won, must not be jeopardised. Nor is the Government willing to discuss changes in terms and conditions of employment that would attract a substantial additional cost if a serious impact is made on front-line services.

I am acutely conscious that 2015 will be the seventh consecutive year in which there will have been no pay increases for public servants and, as we know, there have been two or three actual cuts in nominal wages, depending on one's pay grade, which is unprecedented. During that time, public servants have accepted permanent changes to their terms of employment, including sick and annual leave arrangements, and their working hours, which helped preclude further cuts to front-line public services as numbers fell across the public service and will boost the productivity and efficiency of the service over the long term.

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