Ann Phelan (Carlow-Kilkenny, Labour) | Oireachtas source

I thank the Deputies for their contributions and support for this legislation. The Bill before us is not lengthy but it has very important consequences. I will briefly summarise three of the main issues it addresses regarding the pay and pensions of serving and retired public servants. The first is pay restoration. All serving public servants stand to benefit from these reductions in the cuts from the 2009 and 2013 Financial Emergency Measures in the Public Interest, FEMPI, Acts, but importantly, the lower-paid stand to benefit more, proportionally speaking. The second is the pension-related deduction. This additional levy on the wages of public servants has been in place for six years and this Bill reduces the amount payable for the first time. Just as the levy was applicable across the board, so too is this new measure. This is in keeping with the Government’s emphasis on fair and equitable treatment for all. The final issue is the public service pension reduction, which has been applied to the majority of public servants, at varying rates, since 2011. The amelioration of this measure by the Bill is done in such a way that not only do all benefit from the restoration, but it also ensures that through appropriate calibration of rates, all benefit proportionally. No one group is singled out for either preferential or prejudicial treatment.

I will now address some of the specific issues raised by the Deputies. I thank Deputy Sean Fleming for his support and welcome his contribution to the discussion. I will address the main issues he raised, leaving the remainder for Committee Stage. The Deputy inquires as to whether the lower incremental scales for new entrants to the public service, introduced at the beginning of 2012, can be adjusted. The answer is simple, as they already have been adjusted. As part of the Haddington Road agreement, public servants had the 10% reduced scales merged into pre-existing scales in November 2013, so all new entrants could gradually achieve parity with existing gardaí, nurses, teachers, civil servants and so forth.

Deputy Fleming also referred to the concerns of the Association of Retired Public Servants. I assure him that the Government is fully aware of those concerns and officials from the Department of Public Expenditure and Reform have continually maintained an open dialogue with them throughout this process. The approach adopted in ameliorating the public service pension reduction focused the majority of relief on impacted public servants in receipt of relatively lower pensions. This approach will achieve a result whereby the significant majority of retired public servants will be exempt from the public service pension reduction from 2018 onwards.

Having noted this, the required fiscal recovery is not complete and we are not yet at a stage where we can remove-----

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