Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I propose to take Questions Nos. 56 to 59, inclusive, together.

After the passage of the Public Service Pay and Pensions Act 2017 in the Oireachtas, I accepted an amendment to section 11 of that Bill that required the preparation of a report on new entrant pay. The report was furnished to the Oireachtas in March this year and provided the context within which negotiations on this issue were recently completed. The measure announced provides for a pathway to address the remaining salary scale issues in a way that is both balanced and sustainable. It provides the fairest and the most affordable path to managing the €200 million cost I have identified as being associated with this issue.

The agreement we have reached provides for two interventions in the pay scale of these public servants. One will take place on point 4 of the pay scale and the second will take place on point 8. If accepted, this measure will apply from 1 March 2019 and will be applied to each eligible new entrant as he or she reaches the relevant scale points, points 4 and 8, on his or her current increment scale. This will have the effect of bypassing the relevant points on the scale and thereby reducing the time spent on the pay scale for progression to the maximum point. This measure will benefit over 61,500 public servants who have been recruited since 2011 and underscores the value of being part of the Public Service Stability Agreement, PSSA, 2018-2020. This will include, for example, 16,000 teachers, 5,000 special needs assistants, SNAs, and almost 10,000 nurses. It is estimated that some 58% of new entrants will benefit from this measure in 2019, rising to 78% or 47,750 people by 2020. All new entrants will have received the two point jump by 2024 with carryover costs falling in 2025.

This is a measured agreement that allows for progress in this area but does not compromise our ability to make progress on other societal priorities such as health and the provision of social and affordable housing. As such, it is both fair to public servants and fair to all those who depend on our public services. The cost of this measure in 2019 will be €27 million and this was provided for in budget 2019. The benefits under this measure will be effective from 1 March 2019 and will be restricted to parties adhering to the Public Service Stability Agreement 2018-2020.

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