Jim Walsh (Fianna Fail)

I welcome the undertaking by the Minister for Public Expenditure and Reform, Deputy Brendan Howlin, to review the allowances that are paid across the public service. I recall being invited to a meeting of representative of one of the teachers' unions in Wexford at the time the crisis first emerged. When I queried the attendees on aspects of the issues they were discussing, I discovered that they were in receipt of some €2,000 per year for school yard supervision duties. These are the types of mindless allowances which showed up a dearth of management within the public service. I am pleased the Minister is taking action in this regard. It is the first indication of action I have seen from him which might lead to savings. I hope he will follow through on it.

I welcome the statement yesterday by the Governor of the Central Bank, Professor Patrick Honohan, that the savings we must make will have to extend beyond merely a reduction in the numbers within the public sector to encompass re-examination of pay. Most sensible people would agree with this. The reality is that the reductions in numbers we have seen will yield savings of less than 25% of the gross pay of the staff concerned. Some 50% will go on pensions into the future and of the other 50%, which is a gross saving, half will be lost in tax and universal social charges forgone. When one adds in the lump sum, which is 150% of salary, there is very little return. In fact, a rate of return valuation shows it will take approximately eight years, until 2020, before we begin to effect savings.

Deputy Stephen Donnelly, who is well qualified in this area, has spoken about his meeting, as part of a Dáil Technical Group delegation, with representatives of the troika. He encountered little empathy from the troika in regard to the austerity being imposed on the populace, which he attributed to the fact that it is well aware of the very high salaries being paid at senior level within the public service in this State. The troika's lack of sympathy should be seen against the background of much lower salaries in other member states. Will the Leader invite the Minister for Finance to the House for a debate on this issue? It is coming to the stage where we may have to call on the Taoiseach to attend for a debate on whether the Department of Public Expenditure and Reform should be brought back within the Department of Finance if it is not delivering on the functions it was set up to carry out.