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

That is right. I am resuming from where I left off a number of weeks ago. At that point, I had referred to the need for this legislation to progress a range of pay reform matters. I had just begun to touch on the seagoing commitment scheme, which is one of a number of measures advanced in 2020 to support recruitment and retention in the Naval Service. It provides for a €5,000 payment for each 12 months of seagoing service. Naval personnel of able rating and above with at least three years service, of enlisted rank of able rating and above and of officer ranks are eligible. These measures which support reform, recruitment and retention in particular areas of our public service cannot be progressed to payment under existing Financial Emergency Measures in the Public Interest, FEMPI, Acts. That underscores the need for this amending legislation.

In summary, the Financial Emergency Measures in the Public Interest (No. 2) Act of 2009 provides that no change can be made in the pay of a public servant without legislative amendment, a court order or a determination that there is a legal entitlement to a pay increase. While it is possible to set a pay rate for a new grade or post, it is not possible to change the pay of an existing public servant in post. The Bill provides for amendment of the restrictions on increases to public service pay introduced by the Financial Emergency Measures in the Public Interest (No. 2) Act of 2009. This will allow the Government to provide for changes to remuneration and greater flexibility in the allocation of available resources to public service pay requirements. In the short term this will allow implementation of the pay increases provided for by the Building Momentum agreement, the new public only Sláintecare consultant contract and the seagoing commitment scheme.

Turning to the details of the legislation, the Bill amends or appeals sections 4 and 5 of the Financial Emergency Measures in the Public Interest (No. 2) Act of 2009, section 12A of the Ministers and Secretaries (Amendment) Act of 2011 and section 24 of the Public Service Pay and Pensions Act 2017. This means that the Bill provides for: amendment of the restrictions on increases to public service pay introduced by the Financial Emergency Measures in the Public Interest (No. 2) Act of 2009; changes to pay arising from an Act of the Oireachtas, an order of court or a determination that there is a legal entitlement to a pay increase, increases in the pay or allowances of public servants may be sanctioned; amends the Ministers and Secretaries (Amendment) Act 2011 to ensure that where a contract of employment is amended in accordance with amended provisions of the Act of 2009 no further ministerial sanction is required under that Act; and amends the Public Service Pay and Pensions Act 2017 to align the date for appeal of certain restrictions on increases to public service pay with a date provided in this Bill.

Section 1 sets out a definition of the Financial Emergency Measures in the Public Interest (No. 2) Act 2009 as the "Act of 2009".

Section 2 amends section 4 of the Act of 2009 to provide that in addition to changes to pay arising from an Act of the Oireachtas, an order of the civil courts, an order of the Labour Court or a determination that there is a legal entitlement to a pay increase, increases in pay or allowances of public servants may be sanctioned.

Section 3 amends section 5 of the 2009 Act to provide for retrospective application, up to the date on which this proposed Act is enacted, of a provision allowing for amendment of contracts of employment to increase pay.

Section 4 amends section 16A of the Ministers and Secretaries (Amendment) Act 2011 to ensure that where a contract of employment is amended in accordance with section 4 of the 2009 Act, as amended by this proposed Act, that no further ministerial sanction is required under the Ministers and Secretaries (Amendment) Act 2011.

Section 5 amends section 24(3) of the Public Service Pay and Pensions Act 2017 to align the date for repeal of certain restrictions on increases to public service pay with the date on which the proposed Bill is enacted.

Section 6 provides that the Short Title of the proposed Bill is the Public Service Pay Act 2020.

Concluding the repeal of the financial emergency legislation is an important milestone in the history of the State. Underpinning this achievement and the new public service pay agreement is the strong performance of the economy. The economy is expected to recover next year, with that recovery commencing in the second half of this year. In 2022, the economy is expected to grow by around 4.3% as outlined in the forecasts of the Central Bank, the Irish Fiscal Advisory Council and the OECD, which forecast GDP growth of 4.6%, 4.1% and 4.3%, respectively.

Labour market conditions are also expected to improve next year with employment growth of 3.2% and 3.6% projected for 2022 by the Central Bank and the Irish Fiscal Advisory Council. As a result of the growth in employment the unemployment rate is projected to decline to 7.8% and 6.7% next year, well below the record levels recorded in 2020.

Our approach is about balancing the need for pay restraint, stability and certainty in the delivery of public services with the need to support ongoing public service reform. Key areas of our public services have experienced and responded to very challenging demands over the past 12 months. This Bill allows for implementation of reasonable pay increases and provides a means of using pay, where appropriate, to support the wider public service reform agenda. It is on that basis that I commend the Bill to the House and I look forward to hearing the views of colleagues across the House.

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