Seanad debates

Tuesday, 25 March 2003

Finance Bill 2003 [ Certified Money Bill ] : Second Stage.

 

As regards benchmarking, raised by Senators Quinn, Ross and McDowell, we had maintained going into the partnership talks that this cost was significant and had to be spread over a number of budgetary periods. That is what has happened as the deal will be spread over 2003 and the next three budgetary periods. While the benchmarking deal is a significant cost, it is important to remember that this exercise was an independent evaluation of pay in the public service in comparison with that in the private sector. The process has the advantage over the previous experience of determining public service pay since it allows for a single overall evaluation and did not depend on historical relativities to determine the outcome. In the new pay agreement this departure from the old relativities based culture is confirmed by both sides. That is an important step forward in the way we determine public service pay. In addition, the new agreement contains measures to promote modernisation and change in the public service. This will improve the delivery of public services and reduce the incidence of industrial action. This should have a beneficial effect on all consumers of public services.

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