Dáil debates

Friday, 8 July 2016

Financial Emergency Measures in the Public Interest: Statements

 

1:50 pm

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats) | Oireachtas source

I am glad to have a chance to speak in this debate. The backdrop to the debate is the question of who in Ireland has taken the brunt of austerity. While there was a recognition that the country was in a very bad place a number of years ago and cutbacks had to be made in certain areas, the burden of that austerity fell disproportionately on those on low and modest incomes. One would have to say also that the burden of austerity has fallen disproportionately on public servants.

The FEMPI legislation is now effectively illegal. It was introduced at a time when there was a financial emergency here but, by any standards, that has eased substantially. Nobody could claim that the economy is in an emergency at the moment. That does not mean that we have gone back to pre-recession times or anything like it, or that there are not still threats, but we are not in a financial emergency. It is impossible for the Government to claim that we are. For that reason, there is an onus on the Government to phase out FEMPI in as short a timescale as possible. Unfortunately, however, that is not happening.

I imagined that FEMPI's illegality would be of serious concern to Government Ministers. There is no shortage of Ministers trumpeting the rule of law to delay legislation in other areas. We had it just recently in the case of allowing terminations in the case of fatal foetal abnormality, for example. We had it two weeks ago in defence of the continuing discrimination on religious grounds for children seeking to attend their local school. Where are those Ministers now when the rule of law is clearly not being applied in respect of public sector pay? Some laws are evidently more legal than others in the Government's mind.

Together with other Members, I raised this issue with the Minister on Wednesday during oral questions when we were met with a list of excuses. Even Brexit was used as a reason not to phase out FEMPI at a much quicker pace. The Minister keeps hiding behind the fact that unions signed up to the Lansdowne Road agreement, but there is nothing stopping him from improving that agreement. It is hardly as if unions are going to say no to a better deal for their members. We now have a situation where the unwinding of FEMPI is tied up with the Lansdowne Road agreement. There is a lack of clarity about the element that is Lansdowne Road and the element that is the unwinding of FEMPI. It has been kicked into Lansdowne Road while FEMPI should really be dealt with as a separate issue.

In addition, the Lansdowne Road agreement does not provide for full restoration of pay cuts. I would like to know what the Minister's plan is beyond the three years of the Lansdowne Road agreement. How long more does he think the so-called financial emergency will last? I ask the Minister to spell out when, within his plans, he intends to complete the full unwinding of FEMPI.

Several things have changed since the Lansdowne Road agreement. The economy has vastly improved, thankfully, beyond what was expected prior to the agreement being signed. We are no longer in an emergency. A new Dáil has been elected with a majority in favour of improving the terms. Three Ministers or Ministers of State who voted against the 2015 FEMPI Act are now in government.

There is a lot of talk about how that vote went last year. I remember the then Minister coming into the House and talking about the real danger of legal action being taken against the Government. If that danger was present last year, surely it is present to an even greater extent this year. At the time, however, people took different views about that legislation. Some people voted against it because it did not go far enough. Others voted for it because some start of rewinding was better than none. By any standards, we are surely in a situation where there is majority agreement in this House to accelerate the unwinding of FEMPI. I wonder what are the views of those Independent Ministers now. It would be interesting to hear their views but I do not think any of them has turned up for this debate today.

Three representative bodies are outside the Lansdowne Road agreement. The Minister's attitude to these bodies has only served to antagonise the situation and delay a resolution of this issue. Public servants need more than just a pat on the back telling them, "Well done, you've made a great contribution". We need to recognise the reality of life for public servants. There was a time when if somebody got a permanent pensionable job as a teacher, garda, nurse or in the civil service, they had a reasonable expectation of a fair standard of living. If they were in a relationship with another public servant there was a fair expectation that they could afford to buy a three-bedroom house and be reasonably financially secure for their lives. That expectation no longer exists.

Public servants are faced with a double-whammy as a result of the recession. Their pay was cut substantially and pensioners were also included. At a time in their lives when they expected some easing of financial pressure, they had huge cuts to their pensions. This happened at the same time as a raft of new charges and taxes were introduced, so people saw huge reductions in their disposable income. A major adjustment was required to their standard of living, including spending on holidays and looking after their children or grandchildren.

The Minister needs to recognise that what people were put through was fairly horrendous. Given that the country is now coming out of recession and all the headline figures are in a reasonably healthy state, serious consideration should be given to accelerating the unwinding of FEMPI. The Minister has not indicated any rethink of the situation over the last couple of years. Neither today nor in his response last Wednesday did the Minister indicate a recognition of what people have been put through. The impact on people has been severe. We are going to pay a big price for that in future in terms of people's attitude to the public service and morale within it.

These deep cuts have hit people's morale, which is evident in terms of the impacts we are seeing in how services are being provided. The most notable of these cuts, namely, the reduction in pay for new entrants, is having a devastating effect on teachers, gardaí and nurses. They are finding it hard to survive, financially. Not to mind buying a house or having a family, they cannot survive financially in terms of paying rent and normal overheads on the level of salaries that are available. This is why, on a large-scale basis, young entrants to teaching and nursing who cannot survive here are emigrating to places like Dubai and Abu Dhabi for five years to try to make some money so that on their return they can live and have a normal quality of life in this country. It is appalling that professional public servants working to provide important services in our country are being treated like this and are being forced out of this country. According to the principals of our schools all over the country, up to seven teachers a year are seeking career breaks solely for that reason. That is not a sustainable situation. The Government must address this matter urgently because ultimately we will pay a huge price in terms of the quality of our public services. Public servants deserve better.

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