Brendan Howlin (Wexford, Labour) | Oireachtas source

Following consultation with my Government colleagues, I issued an invitation to the representative organisations for public servants to enter discussions with public service management. The discussions commenced today and I am sure the Deputy will understand my reluctance to engage in negotiations in public. Further formal discussions will take place in the coming weeks and although I am not in a position to predict when the talks will conclude, early agreement will facilitate the assignment of resources and better budgetary planning. 

The end of the period of acute financial emergency which necessitated the introduction of the FEMPI legislation by this and the previous Government is now in sight because of the actions of the Government. Planning for the orderly wind-down of the legislation in an agreed and sustainable process, rather than risking a successful legal challenge, is the appropriate, prudent and correct approach. The Deputy is aware that I am required to review the FEMPI Acts annually. My next review of the Acts is due to be carried out and a report laid before the Houses of the Oireachtas before the end of June this year. Any proposed change to the legislation arising from the discussion process will be subject to Government approval and brought before the Houses of the Oireachtas. 

When the economic crisis determined that further reductions were required of public servants in 2013 under the Haddington Road agreement, agreement was secured by negotiation and discussion with the representatives of those directly affected. A similar approach in current circumstances is also appropriate. The Government considers any pay agreement should be prudent, modest and sustainable in the overall budgetary context as set out in the spring economic statement. Through the Haddington Road agreement and its predecessor, the Croke Park agreement, and through the supporting FEMPI legislation public servants have made a significant contribution to our fiscal recovery, including by way of  direct reductions in pay and pensions. From 2009 to 2014 the cost to the Exchequer of public service pay was reduced by €3.7 billion, or more than 21%. Notwithstanding the improving economy, because of the magnitude of these reductions, the Exchequer could not sustain the immediate restoration of such reductions. I have stated previously that both sides need to be realistic in terms of the expectations and outcomes of the talks regarding what can be achieved in the coming weeks.

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