Mary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

2. To ask the Minister for Public Expenditure and Reform the time frame for rolling back the financial emergency measures in the public interest legislation; the order and manner in which this will be done; his meetings to date and planned meetings with unions in the public sector on this issue; and if he will make a statement on the matter. [11966/15]

Mary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

My question relates to the rolling back or unwinding of the financial emergency measures in the public interest legislation, known as FEMPI. How does the Minister plan to achieve this and what is the order and manner by which he proposes to roll it back? What meetings has he had to date to discuss these matters? What meetings does he plan to have with the unions in the public sector on the issue? Will he give us some sense of the timescale in which he envisages the unwinding of the FEMPI legislation to occur?

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

The  Haddington Road agreement, underpinned by the financial emergency measures in the public interest legislation, forms the cornerstone of public pay policy until 2016 when it is due to expire. The agreement which contains a number of measures directly affecting the pay of staff is delivering and making a significant contribution to the achievement of the Government's fiscal consolidation target to have a deficit below 3% of GDP this year. The ongoing recovery in the economy is, in no small part, due to the contribution of public servants, as I acknowledge repeatedly.

The public service pay bill must be maintained at sustainable levels. The recovery has facilitated reinvestment, as I have said, in some front line services. In 2015 some €300 million will be reinvested in health, education and An Garda Síochána. The FEMPI Acts deliver about €2.2 billion in reduced public service remuneration and pensions. Notwithstanding our improving economy, because of the magnitude of that sum of money the economy could not sustain the immediate restoration of all of those reductions. Most public servants and their representatives understand that.

I have indicated that, following receipt of the first quarter exchequer returns and engagement with my colleagues in government, it is intended that I talk to the public service unions regarding the gradual unwinding, in parallel and consistent with the improving economy, of the FEMPI Acts. This is consistent with the approach adopted in securing agreement on the Haddington Road agreement through engagement with those directly involved.

In essence, early in the next quarter I intend to open the books in the same way, explain what we need to do, hear the proposals from the public service unions in terms of the priorities they would set for unwinding and to engage on that in a way that is sustainable. That would have to be voted upon and it is my hope that we would have an agreement before I present the expenditure books to the Dáil in the next budget.

Mary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I agree with the Minister insofar as I do not believe anybody imagined that in one fell swoop pay, pensions and so on would be restored. I do not think there was any such expectation. I would like more detail from the Minister in respect of how he envisages the unwinding of FEMPI playing out. Where does he propose to start? Does he propose to start with pay or pensions? Is he considering flat rate or percentage increases?

The Minister indicated he has not yet formally opened discussions with the unions. Has he met unions or anybody else informally in respect of these matters? I was struck a week or more ago by the fact that one of his senior officials was sounding warnings that a public service pay deal was not certain and seemed to be throwing cold water on any notion of such a pay deal. I would like him to respond to that.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

The Deputy asked a number of important questions. On whether a public pay deal is certain, the answer is certainly not. The Haddington Road agreement was far from certain and, as the Deputy knows, its first iteration was rejected and we had to go again. I hope I can secure an agreement and that we can have an organised approach to restoring pay to the public service. Those working in it have not had a pay rise for seven years and those earning over €65,000 have had three reductions in pay. They have made a significant contribution to achieving the fiscal targets and restoring the good fortunes of the State.

In terms of my priorities, I want to first get agreement at Government level and have an open discussion with the public sector unions. I have already met the recently formed organisation of all public sector pensioners, the first time there has been one co-ordinated group. It will not be left out and I have made a commitment in terms of any pay deal. Pay and pensions will be addressed in parallel.

Mary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

The Minister proposes to address pay and pensions in parallel.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

That is what I hope to do.

Mary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

That is what the Minister hopes to do. He might, then, when he responds shed some light on his thinking as regards flat rate versus percentage increases. As he knows, there is a debate at play at the moment among trade unions and public servants as to which would be the better route. He referred to pay cuts for those earning in excess of €65,000. Could he again confirm that the emphasis and priority in the unwinding of FEMPI will be to address the public and civil servants on the lowest pay rates and to work on that basis? He indicated that previously, but I would like him to confirm that will in fact be the case.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

In respect of those earning over €65,000, we will implement the Haddington Road agreement in full. Part of the agreement is the winding back of some of the pay reductions during the course of 2016 and 2017, and into 2018, if I recall. We will be faithful to the agreement we have, as the trade union and public service sides have been faithful to it in terms of delivering on their sides. I have my views on whether there should be a flat rate or percentage reduction. I want to hear the views of all the public sector unions, but it is and has been my view that those on the lowest level of income should benefit disproportionately more. I will try to achieve that objective in the negotiations.