Brian Hayes (Dublin South West, Fine Gael)

The primary purpose of this Bill is to apply the Financial Emergency Measures in the Public Interest Act of 2009 to serving members of the Judiciary in line with the positive outcome of the recent referendum on the 29th amendment to our Constitution. This amendment, approved by both Houses, amended Article 35(5) of the Constitution in relation to judicial remuneration. The referendum on judicial pay was passed by a significant majority, 79%, of the people on 27 October last.

The Bill provides for the application to the Judiciary, equally and proportionately, of the public service pension related deduction and the same salary reductions as were applied to other public servants in 2009 under the last Government. The intention of the Bill is not to generate significant cost savings to the Central Fund - indeed, it is estimated that some €5.5 million cost savings will arise from the application of the 2009 Acts to the Judiciary - but rather to ensure pay policy is applied on a fair and equal basis to all public servants.

Senators will be aware that a Committee Stage amendment to the Financial Emergency Measures in the Public Interest Act 2010 is being proposed by the Government. The provisions of that Act reduce public service pensions in payment and for those who retire before the end of the "grace period". The proposed amendment will introduce a higher reduction rate of 20% on public service pensions above €100,000. Pensions in excess of €60,000 are currently being adjusted by 12%.

It is estimated that a reduction in public service pensions above €100,000 such as that proposed would potentially affect pensioners who were formerly office holders, such as the President, taoisigh, senior members of the Judiciary such as chief justices or members of the High and Supreme Courts, heads of universities, Civil Service Secretaries General, chief executives of non-commercial State bodies, some hospital consultant doctors, Garda Commissioners and Chiefs of Staff of the Defence Forces. It is estimated that this measure will give rise to savings in the region of some €400 million in a full year.