Martin Mansergh (Tipperary South, Fianna Fail)

Section 6 provides a limited power to the Minister for Finance to exempt or vary the reduction in pay rates provided for in the Bill in respect of a public servant or group or class of public servants where exceptional circumstances exist relating to a condition or aspect of employment and a substantial inequity would arise as a consequence or because of an arbitration award the Government would normally be required to implement. A similar power was also included in respect of the pension levy but, to the best of my knowledge, that power has not been exercised to date.

It is important some discretion is available to the Minister to address the types of situations mentioned should they arise. It would be the Minster's intention to exercise this power very sparingly and only where it is just and equitable to do so.

In some ways, it is surprising that Senator Doherty would want to delete the section because one would assume he would want there to be instances where pay reductions could be moderated where an inequity would otherwise arise. At the same time, to do him justice, he does not interpret the section, nor do I, as allowing the Minister to exempt, say, large categories of lower paid workers. That is not the intention of this.

As was discussed at much greater length in the other House, in a public service which amounts to between 320,000 and 330,000 public servants, there is a large number of categories and subcategories where circumstances might be somewhat different. I suppose it is a safeguard clause in case a particular anomaly that has not been anticipated subsequently arises and it would give the Minister the power to deal with it.

Section 7 requires the Minister to report regularly on the entire legislation. Obviously, any report would have to include exercise of the discretion. I am quite satisfied that it will not lead to any abuse of power or the exclusion of any highly paid officeholders or public servants. It is not intended, nor does it allow for that. The situation is absolutely watertight in that regard.

Senator Bradford raised a particular place of employment. Earlier this year I had the pleasure of visiting and was given a detailed tour of Moorepark. It is a very fine establishment. Obviously, the Senator was referring to a subsidiary established by it. The key criteria is whether the employees are in receipt of a public service pension and, therefore, the pension levy and not benchmarking. Nevertheless the case presented to officials will be examined and he will receive a reply.