Dáil debates

Wednesday, 19 October 2016

Ceisteanna - Questions (Resumed) - Priority Questions

Public Sector Pay

3:50 pm

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
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8. To ask the Minister for Public Expenditure and Reform the way it is possible to justify pay increases for Deputies in April 2017 and again in January 2018 in view of the fact there was a 10 cent increase in the minimum wage and very little of substance in the budget for low and middle income families; and if he will make a statement on the matter. [31163/16]

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
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How is it possible to justify pay increases for the Taoiseach, Ministers, Deputies and Senators at a time when public servants are engaging in industrial action due to genuine concerns about their pay? Strike action has been threatened by teachers and members of An Garda Síochána. Whoever came up with the proposed increase arrived at the appropriate date, April Fools' Day, to introduce it. How can the Minister stand over pay increases and pay restoration for Deputies and politicians on 1 April next?

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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There is always a difficulty in having any group decide their own pay and that is particularly the case for those involved in public life. I remind Deputies that the principle that parliamentarians should be paid is a fundamental part of how we support our democratic process. If we do not pay our parliamentarians a wage to reflect the responsibilities they have, we will confine our pool of potential politicians to those of independent means or, in a worse case scenario, to those who might be beholden to others. We are all aware of the risks that can pose to the proper practice of politics.

The question therefore becomes what is a reasonable rate of pay for the responsibilities involved and who should decide this. Some Members will recall the recommendation of the 38th report of the review body on higher remuneration in the public sector in 2000 that the pay of Deputies should be linked to the principal officer grade in the Civil Service. That recommendation was based on independent and expert consideration of the level of responsibility and the commensurate level of pay. The review body also recommended that Senators be paid 70% of the Teachta Dála rate. The Government of the day accepted that recommendation and the pay of Deputies has followed this link ever since, including through the pay cuts of the Financial Emergency Measures in the Public Interest Act, FEMPI, and now through the pay restoration measures involved in the unwinding of that same legislation.

The FEMPI legislation provided for pay reductions for all public servants on a progressive basis. Similarly, provision for all public servants was included in the phased unwinding of the FEMPI measures. Of course, notwithstanding the enactment of the FEMPI Act 2015, it remains open to Members of the Oireachtas to forego the restoration of the pay reduction on a voluntary basis.

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
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The Minister referred to a fair wage for Members of the Oireachtas and said that the wage should reflect the responsibilities we have. We are very well paid, and I am sure the Minister accepts that. We receive two and a half times the average industrial wage. Currently, a public sector worker on an average salary of between €35,000 and €40,000 per annum will receive a €1,000 increase or restoration, yet those who are on over €65,000, including Members of the House, will receive a minimum of 8%, which is a total of €5,400. That is an increase of over €100 per week. I do not believe that is justified. The Minister can talk about linking our pay to that of principal officers, but ultimately the decisions are made by this House. We are the people who amended the FEMPI legislation. The Government of the day introduced the FEMPI Act - we opposed it - which unilaterally took money from public servants. People on salaries below €65,000 are not seeing pay restoration. That is the reason they are threatening strike action. People on more than €65,000, including Members of the House, will get increases, and I do not believe that is fair. This is a matter of fairness.

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The Deputy will be aware, although he did not acknowledge it in the question he put to me, that yesterday the Cabinet made the decision that office holders would forfeit the wage restoration that is due under the lifetime of the Lansdowne Road agreement. That decision by this Government, reaffirming the decision of the last Government, was made precisely in recognition of the challenges our country still faces. We acknowledge that the country is recovering but we have always been clear that it is not yet a recovered country. For that reason, anybody who is privileged to be a member of the Government is deeply aware of the challenges that members of the public services and beyond still face. We made the decision, and it was the right decision, to forfeit that phase of wage restoration. I am being very clear about the Government's policy on politicians' pay. I ask the Deputy to clarify Sinn Féin's policy on this matter. For a period of time I heard the party say that politicians should only be paid the average industrial wage. Will the Deputy clarify if that is still the case and, if it is, what is the amount of money?

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
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That is the greatest red herring I have encountered in a long time - talk about diversionary tactics. I take the average industrial wage. I employ somebody. I have taken somebody off the live register and I pay them €300 per week, which comes out of my salary. I do that voluntarily, not to get any credit. I do it because I provide an enhanced constituency service.

I welcome the fact that office holders, as the Minister put it, have forfeited any increases that may be due to them, but logically it should follow that the same should happen in the case of Deputies. Why should Deputies get pay restoration on 1 April next? When the legislation was first brought to the House we put forward amendments to reduce Deputies' pay to €75,000. We voted against the provisions that allowed this to happen in the first place and in a few weeks we will bring forward a motion that will again seek to stop these unfair payments to Deputies. This is not because I do not believe that people should be paid fairly but because I believe it is unfair that somebody on €30,000 or €40,00 per year, an average wage in the public sector, is getting pay restoration of €1,000 while Deputies are expected to take €5,400. It is simply not fair and the Minister must accept that.

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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That is not the question I asked.

Photo of Alan FarrellAlan Farrell (Dublin Fingal, Fine Gael)
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On the question, Minister.

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I am answering the question.

Photo of Alan FarrellAlan Farrell (Dublin Fingal, Fine Gael)
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No, speak on the question on the Order Paper.

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I clearly outlined the policy of office holders in this Government regarding pay restoration. I answered the Deputy's question by outlining the principles upon which Deputies should be paid. It is always subject to agreement in the House. It is vital that we adhere to the principle that politicians do not set other politicians' pay. The benefit of this anchor is that it allows the matter to be dealt with in a clear and unprejudiced fashion. I put a question to the Deputy and he still has not answered it. What amount of money does he draw down as his wages? In light of the fact that his party is tabling a Private Members' motion on this matter, will he sign a waiver form and relinquish his share back to the Exchequer? I ask the Deputy to answer that question now.

Photo of Alan FarrellAlan Farrell (Dublin Fingal, Fine Gael)
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The next question is from Deputy Calleary.