Gerry Horkan (Fianna Fail) | Oireachtas source

I thank the Minister of State for attending the House. I think the last time he was here he was dealing with the mid-term economic review. It is the season of goodwill to all, however, so I am sure we will have a nice, peaceful discussion this afternoon on the Second Stage of this Bill.

I welcome the opportunity to speak on the Public Service Pay and Pensions Bill 2017. The Bill will legislate for the provisions in the Public Service Stability Agreement 2018-2020 made between the Government and the Irish Congress of Trade Unions. The Public Service Pay Commission report was published on 9 May 2017 and was intended to form the basis for the negotiations between the Government and the public sector unions and staff representative associations. The establishment of the Public Service Pay Commission was agreed in the confidence and supply agreement between Fine Gael and my party, Fianna Fáil. It was set up to facilitate agreement on the successor to the Lansdowne Road agreement.

Fianna Fáil has long called for the unwinding of the FEMPI legislation in a fiscally responsible manner and for an agreement that would see a fair deal for public sector workers, in particular those on lower and middle incomes. As a result of the financial crisis in 2008, FEMPI legislation was enacted in 2009 and again in 2010, 2011 and 2013. As part of the gradual unwinding of the FEMPI legislation, the Haddington Road agreement and the Lansdowne agreement were negotiated. Fianna Fáil was not part of those negotiations. However, we believe it is in the interest of the country that the agreement reached is sustainable and fair, particularly for lower and medium-paid workers. It must also allow for more public services to be provided, particularly in health and education. It is imperative that we have strong, sustainable public services. The public relies on these services and it is of the utmost importance to all of us that they are put on a stable footing.

The agreement was ratified by the ICTU, which means that it is agreed across the board. However, individually, the three teacher unions, the ASTI, the TUI, and the INTO, have yet to ratify the agreement. How this will be dealt with is an outstanding issue. As chair of a school board in a school with staff who are members of different unions and none, it is big concern.

Fianna Fáil was prevented by Dáil rules in bringing forward amendments that would have represented a charge on the State finances. As we all know, various money messages and so on are necessary. These amendments would have been ruled out of order and would not have been discussed. Instead, on Committee Stage in the Dáil, we put forward an amendment that would require the Minister for Public Expenditure and Reform to report back to the Oireachtas no later than March 2018 on pay equalisation. The Minister of State referred to it in his contribution. This amendment was passed and we hope that it starts the process towards pay equalisation.

The Bill will remove the effect of the FEMPI legislation for the vast majority of public service workers by 2020. The Minister also referred to this in his contribution. However, many issues remain and need to be raised and considered. Neither the agreement nor this Bill addresses pay equalisation. This means that, despite doing the exact same job, workers who joined after 2011 will still be paid less than their colleagues who took on their posts before then. The agreement states that any solution to the issue must not give rise to implications for the fiscal envelope of the agreement. However, this issue is the main reason the agreement was not ratified by the teacher unions. The Bill will postpone pay restoration for those unions that did not agree to the agreement. This is not unprecedented and ICTU has agreed that individual unions need to sign up to the agreement. It is of utmost importance that the issue is not allowed to escalate further and that industrial action is avoided. Fianna Fáil has long been calling for the Government to come up with a plan to tackle the issue. It is also worth remembering that this is only the Second Stage of the Bill. Further detailed discussion will take place during Committee Stage.

We need to acknowledge that pay inequality is causing dissent in the public sector and is putting pressure on new entrants. When we ask two teachers to teach classes, we pay them differently. When we ask two gardaí to walk the streets at night to protect us, we pay them differently even though they face the same level of danger. The three teacher unions, particularly the INTO and the TUI, have concerns about this Bill which are based completely on pay inequality. We need to move towards addressing those concerns.

Another important issue is staff retention and recruitment, which is affecting many sectors of the public sector. Yet, this agreement fails to deal fully with it. In areas such as nursing and the Defence Forces, numbers have been falling to critical levels. This not only affects the services themselves but also the conditions under which existing employees are working. While the Bill addresses some of the grievances for public sector pensioners, they are not happy with the speed of restoration.

While this agreement will cost €880 million over the next three years, or €1.1 billion over four years, the bulk of the cost will be loaded to 2019 and beyond. The cost in 2018 is €180 million. Unwinding the FEMPI measures on a fiscally sustainable basis has always been a core policy objective for Fianna Fáil. During the financial crisis, the legislation was enacted, but we have unwound much if through this agreement.

Fianna Fáil believes that, in the interests of the country, the agreement reached will be sustainable and fair, particularly for lower and medium-paid workers. It must also allow for more public services to be provided. It is imperative that we make these professions attractive for younger people in order to ensure that we can provide the workforce needed for our growing population. Our public servants are key to providing the services which our population needs and demands.

It is a good day that the Bill is going through. I hope that by the end of the week we will have included many people across the public sector who will benefit somewhat from these provisions. The Minister of State referenced the pension related deduction. I remember for a long time being a councillor and paying a pension-related deduction although none of our pay was pensionable. We were paying a pension-related deduction without getting a pension at the end of it. There are many other people in the public sector who felt very aggrieved at the time. However, it is a positive thing that is happening. I have outlined my concerns and my party's concerns but we are supporting the rapid passage of the Bill through the Houses. I think those who will benefit from it would like it to be done sooner rather than later, and before Christmas.