Dara Calleary (Mayo, Fianna Fail)
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7. To ask the Minister for Public Expenditure and Reform the status of equalising pay for new entrants and existing public sector workers; the steps being taken towards the equalising of pay; and if he will make a statement on the matter. [10594/17]

Dara Calleary (Mayo, Fianna Fail)
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Many pay issues have been resolved in the past number of weeks beneath the surface, of which doctors are the most recent group in terms of their allowances. The ongoing issue of the new entrants is still up in the air and is the cause of some contention. Is any work underway inside or outside of the public sector pay commission to address or engage with this issue?

Paschal Donohoe (Dublin Central, Fine Gael)
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The answer to the Deputy's question is "Yes", in terms of the public sector pay commission and its terms of reference. The Deputy referred to new entrants, an issue which was also recognised in the supply and confidence agreement between the Government and Fianna Fáil. It is considering the matter and will issue its observations in the coming months.

On the broader issue and the background to it, the 10% reduction in starting pay for certain new entrants was introduced in January 2011 as part of the national recovery plan to reduce paid by the then Government.

The issue of addressing the difference in incremental salary scales between those public servants who entered public service employment since 2011 and those who entered before that date was addressed with the relevant union interests under the provisions of the Haddington Road agreement. From 1 November 2013, pre-2011 and post-2011 pay scales were merged into a single consolidated scale applicable to each grade. Generally, the third point of the 1 November 2013 pay scale is equivalent to the first point of the pre-2011 scale. All the relevant details are available on my Department's website. I will furnish to the Deputy any details he may want in that regard.

Any further adjustment for any group of public servants, including new entrants, can be examined under the framework of the Lansdowne Road agreement but must be considered in the context of the total cost of the agreement and the total cost of the outstanding FEMPI restoration post-Lansdowne Road, which is €1.4 billion.

Acting within these constraints, the agreement has provided the flexibility to address particular sectoral issues such as the restoration of supervision and substitution payments and those of new entrants to the education sector as well as some of the other matters to which the Deputy referred.

Dara Calleary (Mayo, Fianna Fail)
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What would the total cost be of - to use the phrase - equalising pay for those post-2011 entrants? It is difficult for people to share the same staff room or for members of An Garda Síochána to share the same beat while on a lower pay scale yet subject to the same demands and risks. There are various challenges in terms of the public service pay bill, but this issue is one of fairness and, in many cases, of camaraderie within the service. This is causing hardship to those on lower pay but it is also causing undue tension in workplaces throughout the country. Has the Minister put a cost on this aspect, which is in addition to the €1.4 billion?

Paschal Donohoe (Dublin Central, Fine Gael)
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It is important to be clear about one of the reasons for the difference in costs and wages. Under the agreement that we now have, the norm for many of the more recent entrants is that, until they get to a much later part of their career, they will be two salary points behind those who joined pre-2011. This means that the entire cost of equalising pay scales will be significant. At the moment, in the context of discussions that we will have under the auspices of aiming to conclude a replacement to the Lansdowne Road agreement, we are working through what the cost could be. I can give the Deputy an illustrative figure, which relates to the example he raised. For the Department of Education and Skills, the cost per annum in respect of teachers alone would be €70 million. That is just for teachers.

Dara Calleary (Mayo, Fianna Fail)
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In the context of the talks, will the Minister give us the most up-to-date timescale that he has with regard to the finalisation of Kevin Duffy's work and his anticipated timescale for talks this year on a Lansdowne Road successor to get under way?

Paschal Donohoe (Dublin Central, Fine Gael)
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The timeframe that has been set and agreed by Mr. Duffy and the Public Pay Commission is that their work will report across the second quarter, which refers to April, May and June. I hope that they meet that timeline. When they publish their report, the Government and representatives of public service employees will then need a period of time to digest the report and comment on it because I anticipate that it will be a significant piece of work. My current target is to be commencing negotiations with trade union representatives well before the summer. I am under no illusion but that these will be difficult negotiations and discussions for both sides. Everyone in the House should be clear about that. The reason they will be difficult refers to the figures I shared with the Deputy a moment ago. The total cost of the FEMPI wage restoration that has not occurred is €1.4 billion per annum. Therefore, all the negotiations that need to take place will be challenging. However, I will approach them in good faith as I know the other interlocutors will too. I remain convinced of the need for a collective agreement and the events of recent months have shown to me even more clearly why such an approach is needed.