Dara Calleary (Mayo, Fianna Fail)
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3. To ask the Minister for Public Expenditure and Reform the status of the progress of the Public Service Pay Commission; if its report will take account of the fiscal space published; if it will have consideration for new entrants; and if he will make a statement on the matter. [19014/17]

Dara Calleary (Mayo, Fianna Fail)
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The work of the Public Service Pay Commission should be coming to an end and it will probably precipitate talks. I want to get a sense of the timeline and the work under way in the Minister's Department on those talks and the commission.

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware, A Programme for a Partnership Government committed the Government to establish a public service pay commission to examine pay levels across the public service. In line with this commitment, the Government agreed in principle in July last year to establish an independent advisory body to examine public service remuneration. This is always a complex matter involving, as it does, the State as employer, public service employees and, most important in many cases, the interests and needs of the public who support the funding of public services through taxation.

The terms of reference of the commission were finalised after an open consultation process. This work is well under way. While the terms of reference provided that the commission would be advisory in nature, we asked for a report initially in quarter 2 of this year. With regard to the work the commission is doing, for its initial report it was asked to provide inputs on how the unwinding of the financial emergency measures in the public interest legislation should proceed, having regard to the evolution of pay trends; a comparison of pay rates; international rates, where possible; and the state of the national finances. In line with its current mandate, the commission will have regard to the national finances. I also understand it has received submissions from a range of interested parties on various aspects of public service employment, including the issue of new entrants which the Deputy and his party have raised on a number of occasions.

The Government will continue to maintain the ability to negotiate directly with employees on pay. The commission's role will be to provide evidence that can provide a framework for the analysis of pay matters to provide the foundation for the approaching discussions. In answer to the Deputy's point, we did ask the commission to report in quarter 2, which means April, May or June. I understand the work is proceeding and that the commission will meet that deadline.

Dara Calleary (Mayo, Fianna Fail)
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Quarter 2 is long. I am trying to get a sense of the timing. Does the Minister expect to receive the report early in quarter 2? Does he have any sense of the month in which it can be expected based on the engagement of his officials? We have to have the public service pay talks completed ahead of the budget. Does the Minister envisage them taking place throughout the summer?

On new entrants, as the Minister knows, teachers will gather next week across the island for their various conferences. What message can we, as public representatives, give to new entrant teachers or new entrants in any grade of the public service or Civil Service on their status? I know that inputs have been made and that we have been strong on this issue. Will the new entrants' role be reflected in the Public Service Pay Commission's report and the talks to come?

Paschal Donohoe (Dublin Central, Fine Gael)
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On the timing, I expect the commission to report in or before May. Therefore, I do not expect the report to be issued towards the end of quarter 2. The discussions will be very difficult, as will all of the proceedings for the next year. The Deputy has made reference to where we stand from a resource point of view for next year. The answer is that, once the commitments the Government has made on increased levels of social welfare and funding our tax reform plans for next year are honoured, the net amount of currently unallocated resources, assuming current rates of growth continue, is around €500 million.

That is a significant amount of money, but given the competing demands for additional spending, additional services and additional changes in our tax structure, it is an amount of money on which careful choices will have to be made.

In answer to Deputy Calleary's direct point on new entrants, as the Deputy will be aware, progress was made in dealing with this area under the Haddington Road agreement where changes were made there. We will look to make the particular changes in that area as part of an agreement with the INTO and TUI.

Dara Calleary (Mayo, Fianna Fail)
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The draft version of the stability programme update published yesterday contains positive figures for growth in the economy. What is the Minister's view on the impact of those growth figures on that €550 million figure? The Minister for Finance, Deputy Noonan, has just told the Committee on Budgetary Oversight of which I am a member that he will not be in a position to look at that properly and publish a figure until June but that he may be in a position to "modestly" increase it if these growth figures continue. Has the Minister any thoughts on this?

Paschal Donohoe (Dublin Central, Fine Gael)
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That is exactly my understanding of the timing in relation to it, that the Minister, Deputy Noonan, and the Department of Finance may make a revision on the figures that I have just shared with Deputy Calleary in June. That will be purely a determination for Deputy Noonan's Department.

In terms of any likely change, Deputy Calleary is correct to state that the growth figures for this year are higher than anticipated. We saw growth last year of approximately 5%. We should see growth this year of approximately 4.5% and we are expecting a growth rate next year of 3% to 3.5%. The key factor in it all, as the Deputy will be aware, is that as we are currently participating in the excessive deficit procedure of exiting from a bailout programme and under the fiscal rules, we must deliver the medium-term objective of having a balanced budget next year. When we deliver that, the position then changes significantly for subsequent years and that is the key factor in terms of the availability of resources for next year. I emphasise that those resources will be very scarce against the array of demands placed against them.