Mairead Farrell (Galway West, Sinn Fein)
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80. To ask the Minister for Public Expenditure and Reform his views relating to public pay. [48647/22]

Mairead Farrell (Galway West, Sinn Fein)
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In relation to the conversation the Minister just had with Deputy Nash, we are all aware of the impact of the cost-of-living crisis on many people. This question is on the Minister’s view on public pay.

Michael McGrath (Cork South Central, Fianna Fail)
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Public service pay has been governed by a system of collective agreements since the Croke Park agreement was negotiated in 2010. These collective agreements have helped to ensure that public pay is managed in a sustainable, affordable and orderly manner. These agreements have also enabled significant reform of public services and changes to work practices.

As the Deputy will be aware, the current public service agreement, namely, Building Momentum, was due to expire at the end of 2022. Discussions recently concluded between the parties to the agreement following the triggering of the review clause of the agreement by public service unions and associations due to the increases in the cost of living. These were challenging discussions given the impact high levels of inflation are having on living standards of workers, but also because of the uncertainty in the global economic outlook. The Government’s aim in these talks was to strike the right balance and seek to achieve a deal that is fair and affordable to both taxpayers generally and public service employees.

The outcome of these discussions was a set of proposals put forward by the Workplace Relations Commission to extend Building Momentum for a period of 12 months, to the end of 2023. Three additional pay adjustments totalling 6.5% are provided for under these proposals over this and next year. The Deputy will be familiar with the detail of that.

The cost of these proposed pay adjustments under the extension to Building Momentum is estimated to be €1.6 billion spread over three calendar years - 2022 to 2024, inclusive. This extension would make Building Momentum a three-year pay deal. The extension acknowledges the higher than anticipated rates of inflation that have emerged since 2021 and, in particular, the impact of cost of living pressures. The existing agreement provided headline benefits of 3%. In total, including the existing agreement and the extension, headline benefits over the lifetime of Building Momentum amount to 9.5%, or just over 3% per year.

In respect of public servants at lower pay levels, the extended Building Momentum, as proposed, provides for increases of 12.5% over its lifetime, which is an average of just over 4% per annum.

Mairead Farrell (Galway West, Sinn Fein)
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I want to raise the issue of section 39 workers. As the Minister is aware, many section 39 workers held rallies and protests in the lead up to the budget. They also did so in my hometown of Galway.

I would imagine that we all recognise that section 39 workers do Trojan work and how much, as a State, we rely on their work. The reality is they often feel undervalued. We know that the income inequality has a massive impact on those workers. We also know that the income inequality aspect has an impact on retention of staff for these organisations. Will the Minister outline what steps have been taken in budget 2023 and the impact that will have on these workers?

Michael McGrath (Cork South Central, Fianna Fail)
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I thank Deputy Farrell and agree with her point on the value of section 39 organisations and the work they do. I met representatives of several section 39 organisations over recent weeks in the lead-up to the budget and they made the point to me on the impact of the pay deal on them. As they are of course grant-aided organisations, they receive their financial support directly from the HSE. I expect the financial support they receive from the HSE will need to reflect the fact that there is an increase in funding for the Department of Health and that pay costs will now present an additional burden for many of these organisations, which are competing with the public sector to attract and retain staff. As matters stand and as the Deputy is aware, their staff are not public servants. They receive significant grant support from the Exchequer. Recognising the cost-of-living pressures and the costs of running the services, we have made an additional provision across the health area of €110 million, much of which will go to section 39 organisations between now and the end of the year to help them to sustain service provision.

Mairead Farrell (Galway West, Sinn Fein)
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The detail of that will be important to the workers. The topic of the evening is the considerable pressure people are under as a result of the cost-of-living crisis. I realise we refer to it often in this Chamber but the reality is that people are choosing between heating, eating and paying the rent. It is difficult for many to do all three.

I want to raise the issue of the secretarial assistants. The Houses of the Oireachtas Commission has sent the Minister the Shay Cody report on secretarial assistants. Can the Minister advise me on the next step? I am sure he is aware that tomorrow it will be four years since SIPTU lodged the pay claim. Some political staff are still starting at a salary that is lower than the living wage, which is shocking.

Michael McGrath (Cork South Central, Fianna Fail)
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I thank the Deputy for raising this issue. Having been a practising Deputy for more than 15 years, I have a deep appreciation of the work of our secretarial assistants. An independent review was carried out on the secretarial assistant grade at the request of the Houses of the Oireachtas Commission. It has been completed and in the past few days has been sent to my Department, having been considered by the commission. Under the 2003 Act, it falls to the Minister for Public Expenditure and Reform to give consent or not to a proposal of the Houses of the Oireachtas Commission. I received the report only in the past few days. I have not yet read it but I am sure it will be made available to me by my officials as soon as they have carried out an initial assessment of it. I certainly will not delay. Once I have full sight of the report and have considered its implications, I will give a decision within a very short period.