Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

As the Deputy is aware, section 12 of the Financial Emergency Measures in the Public Interest Act 2013 obliges me to submit a written report on the operation, effectiveness and impact of FEMPI legislation to the Oireachtas before 30 June each year.  As part of those reports, I consider whether or not any of the provisions of the relevant Acts continue to be necessary having regard to the purposes of those Acts, the revenues of the State and State commitments in respect of public service pay and pensions.

My report was submitted in June of this year and highlights: the economic circumstances of the State, the budgetary outlook, the debt position, returns from taxation, Brexit and preparedness for other economic shocks. It concluded that, on the basis of the prevailing economic and fiscal outlook, the timetable for pay and pensions restoration up to July 2022 continued to be appropriate and necessary.

The report references the Public Service Pay and Pension Act 2017. This Act provides for the restoration of reductions made to public service pay and pensions by the FEMPI Acts. In that regard and as the Deputy knows, on 1 October 2020, public servants will receive a 2% pay increase. This will complete pay restoration for public servants earning up to €70,000 per annum. Also on 1 October, reductions of between 5% and 8% made to certain allowances in 2010 will cease.

In addition to pay, the Public Service Pay and Pensions Act 2017 provides that, by the end of this year, an order shall be made to restore, at a date to be decided, reductions made to certain public service pensions.

Taking what I have just said into account, very substantial progress will be made in completing the FEMPI restoration process by the end of this year. I highlight that the elements I have set out relate to the thousands of public servants who have been at the front line in delivering key services during the current pandemic. These services are critical and range across the areas of health, education, justice, welfare and business supports to name but a few. They have ensured that this Government continues to deliver a comprehensive national response to the Covid-19 pandemic.

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