Dáil debates
Tuesday, 29 September 2020
Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions
Public Sector Pay
10:05 pm
Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source
In overall terms, it is very important that we manage the public service pay and pensions bill, which is of the order of €20 billion and which represents approximately one third of the State's overall current expenditure. This needs to be managed in an affordable and responsible manner. That will inform and guide my approach with what remains to be done with regard to the FEMPI legislation. Cabinet gave approval today for the drafting of legislation to remove what has become known as the FEMPI handcuffs. That is another important step along the journey. The 2% pay restoration to be implemented on 1 October will have a full-year cost of €264 million. On balance, it is the right thing to do to honour the agreement in full. I hope it will create a better and more positive environment within which it might be possible to negotiate a new deal with the public service unions, albeit in very changed and difficult circumstances.
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