Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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39. To ask the Minister for Public Expenditure and Reform the status of negotiations with public service unions and representative bodies in regard to the implementation of the Public Service Stability Agreement 2013-2018, the Lansdowne Road agreement; and if he will make a statement on the matter. [13018/16]

Paschal Donohoe (Dublin Central, Fine Gael)
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Pay issues for public servants are currently determined within the constraints set by the Financial Emergency Measures in the Public Interest, FEMPI, Acts of 2009 to 2015 while the industrial relations environment is managed under the terms of the Public Service Stability Agreement 2013-2018, the Lansdowne Road agreement. The programme for Government contains a strong commitment to the Lansdowne Road agreement. This gives a framework for the next few years for the Government's proposals for ongoing public service reform as well as setting out an agreed pathway to pay restoration for public servants that is affordable to taxpayers.

I believe the agreement is the best way forward to meeting the needs of our public service in terms of pay policy while also continuing to reform work practices and deliver a public service that is fit for purpose. This policy also facilities the allocation of existing staff resources by the Government to essential front-line services to enhance service delivery and support existing public servants in the delivery of those services.

Dara Calleary (Mayo, Fianna Fail)
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In regard to the public service pay commission, to which the Government agreed as part of Fianna Fáil facilitation, the Minister mentioned he will have discussions with the parties involved in the Lansdowne Road agreement. Will the Minister provide a timeline in regard to those discussions and give us some indication of when he will come back with proposals?

The Minister also spoke of a commitment to the gradual repeal of the FEMPI measures. Will he define what he means by "gradual"? Has the Government a timeline in mind as to how that will unwind? Retired public servants have also taken hits in regard to the various FEMPI cuts. Will the Minister engage with their associations in these discussions to the same level as with trade unions?

David Cullinane (Waterford, Sinn Fein)
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I gave qualified support to the Lansdowne Road agreement because at least it gave something back. However, the problem I have in regard to that agreement, which we would honour, concerns pay restoration. The Minister spoke about pay restoration but it is for those on over €65,000 in terms of what was taken from them through the Haddington Road agreement.

Paschal Donohoe (Dublin Central, Fine Gael)
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It is not. The Deputy is wrong.

David Cullinane (Waterford, Sinn Fein)
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It is. I am talking about the Lansdowne Road agreement. There was a separate proposal in the Croke Park agreement, a registered agreement that is being implemented as part of the Lansdowne Road agreement. For those on over €65,000, they get full pay restoration - in terms of what was taken under the Haddington Road agreement - over 2017 and 2018 and for those on over €110,000, they get full restoration in three instalments. The Minister may not be aware of that but I am certain of my facts. There is full pay restoration in terms of what was taken from those on over €65,000 over 2017, 2018 and 2019. What about those on salaries under €65,000? They had their pay chopped in 2009 by the previous Minister. Where is the pay restoration for them?

Brendan Howlin (Wexford, Labour)
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The previous Minister touched not a cent of anybody on under €65,000 but facts were never Sinn Féin's strong point. I have two questions. The cost of providing for the Lansdowne Road agreement for 2016 was €300 million. Has the Minister set aside any additional funding for additional public service pay restoration in 2016? In regard to pensioners, would the Minister agree that as the economy improves, pensioners should be the first to have full pension restoration?

Jim Daly (Cork South West, Fine Gael)
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The Minister may have some latitude in regard to time, provided he responds to the three Deputies as comprehensively as possible.

Paschal Donohoe (Dublin Central, Fine Gael)
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Will Deputy Calleary please repeat his first question?

Dara Calleary (Mayo, Fianna Fail)
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I asked about the timeline in regard to the new commission. The Minister said earlier he was having discussions with the various signatories of the Lansdowne Road agreement.

Paschal Donohoe (Dublin Central, Fine Gael)
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On the timeline, I will begin discussions with the stakeholders of the Lansdowne Road agreement in regard to the public service pay commission in the coming weeks. When the commission will be set up will depend on the input I get from stakeholders and I will keep the Deputy apprised of that. I do not wish to prejudge what people may say on that.

In regard to engagement with pensioners and others in regard to their agreements, I do not envisage further contact with any groups in regard to future changes in public service pay or pensions because the agreement we have is in place up to 2018. The contact I will have with groups or individuals will be about how we implement the agreement as it is currently organised.

In answer to Deputy Cullinane's question, the benefit of the Lansdowne Road agreement is that it gives the strongest benefit to people on low and middle incomes. Given the way the last Government negotiated the agreement, which was led by Deputy Howlin and which focused on the cash amount made available to people on different salary tiers-----

Jim Daly (Cork South West, Fine Gael)
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The Minister has 15 seconds.

Paschal Donohoe (Dublin Central, Fine Gael)
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-----the percentage increase was largest for those on low and middle incomes.

David Cullinane (Waterford, Sinn Fein)
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I am talking about those earning €65,000.

Paschal Donohoe (Dublin Central, Fine Gael)
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Those on higher incomes received a lower percentage increase than those on low incomes.

David Cullinane (Waterford, Sinn Fein)
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They are having their pay fully restored.

Jim Daly (Cork South West, Fine Gael)
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Deputy Cullinane, the Minister is speaking.

Paschal Donohoe (Dublin Central, Fine Gael)
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Deputy Cullinane's approach is clear. When I attempt to answer a question-----

Jim Daly (Cork South West, Fine Gael)
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Will the Minister address Deputy Howlin's question, please?

Paschal Donohoe (Dublin Central, Fine Gael)
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I do not want to do Deputy Howlin a disservice, but when I give Deputy Cullinane an answer that is different from what he wants, he does not want to hear it. I have already covered Deputy Howlin's question about pensions. I will not prejudge negotiations we might have in the future as to where benefits will go but we have an agreement in place until 2018. I have not set aside additional amounts on top of the sums to which the Deputy referred.