Paddy Burke (Fine Gael)
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I thank the Cathaoirleach and welcome Minister of State, Deputy Anne Rabbitte to the House. I raise this issue as it has been brought up with me on a number of occasions in the last couple of weeks. It relates to the permanency of primary school teachers the length and breadth of the country. I understand from a number of those teachers that the vast majority of them are employed on a five-year contract basis and if that is the case, this provides no great permanency to them. These teachers want to settle down, buy houses and rear families. If people are on a contract for five years, the bank will not entertain them to get a loan and buy a house, so it has very serious consequences for people who are highly educated and have gone to secondary school and third level and gotten their degrees. In some cases they are more than adequately educated and have more degrees than are necessary for the profession they are carrying out. Even so, in many cases they find that being on a five-year contract, they cannot get a loan to buy a house, settle down and raise a family.

This also raises questions about the Catholic schools management agency. It gives out the jobs in rural Ireland, in particular, although not solely there and they are agreeing the five-year contracts in many cases.I ask the Minister to look at this. It should be changed. There should be a more permanent basis for people who are looking for jobs as primary school teachers and who, as I said, want to settle down in an area. If they want to move from a city to a rural area, that should be facilitated.

As the Minister of State well knows, there is huge pressure on teachers in city areas. I propose that those living in rent pressure zones should get an increase. They should be on a higher wage than those in other areas because houses are more expensive. The cost of living is higher in Dublin and the other cities than it is in rural areas. It is more expensive to buy a house or an apartment, in addition to transport, parking, and all the other costs involved with people's and families' day-to-day lives. The Government and the Minister for Education should look at an increase in wages, or a supplement to teachers' wages, for those teaching in city centres or the commuter belts located in areas where rents are high. Such an increase could be based on the rent pressure zones. I propose that the Minister of State brings that back to the senior Minister. It makes common sense. Many people would agree with it. There are more costs for a person teaching in Dublin than for somebody in a rural area. That is a fact of life in this country.

I hope the Minister of State will have a good answer for me on both those issues and, if not, that she will be able to bring them back to the senior Minister.

Anne Rabbitte (Galway East, Fianna Fail)
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I thank the Senator for raising this matter. I am answering on behalf of the Minister, Deputy Foley. I will read her script and then address some of the points not covered in it.

I thank the Senator for raising this important matter. With regard to the introduction of a special rate of pay for teachers in rent pressure zones, pay and workplace reform measures for public servants have been governed by a framework of public service pay agreements for a number of years, with the new public service agreement in place until June 2026. The value of public pay deals to the Government and the taxpayer is in ensuring that pay costs are managed in a sustainable and orderly way and in a climate of industrial peace. By and large, public pay agreements have delivered on these objectives over the past 12 years. The public service agreement has allowed a programme of pay restoration for public servants and new entrant pay has been gradually restored over the years. The previous agreement, Building Momentum, provided for increases of 8.5% to 9.5% over the entire agreement, with lower paid workers receiving higher percentage increases.

The public service agreement provides for further baseline increases of 9.25% for more than 100,000 staff in the school sector as well as retired staff. On teacher pay specifically, these increases will increase the pay of a teacher on the top point to approximately €85,000 per annum. The starting pay for a teacher will be around €46,000 per annum, almost €20,000 higher than the 2011 rates. There have been other recent measures under Building Momentum to increase pay and allow new entrant teachers move up the pay scale more quickly.

The Government is committed to the delivery of quality public services and will continue to approach public service pay in a balanced way that is reasonable and fair to both public servants and the taxpayer. However, it acknowledges that the cost of renting and the current price pressures in society present particular challenges and are a source of concern for all public services, including staff in the education sector. I will certainly bring the Senator's comment on the Catholic Primary Schools Management Association back to the Minister. When it comes to contract work and trying to secure loans, be they for mortgages or car loans, contract workers must show they have permanency of employment. If they are seeking to purchase or engage in a loan, are coming to the final year of their contract and cannot show permanency from there out, they cannot secure a mortgage or car loan. One of the basic criteria insisted upon by the Central Bank is for people to demonstrate they are in permanent employment.People who are on a contract placement are excluded from entering the housing market or finding their own affordable solutions. It can also apply to a loan for a car to allow them to travel to their place of work. I will certainly bring that back to the Minister, Deputy Foley.

Another conversation which is not in my script but which I have seen work very successfully has been the so-called London rate. The Senator spoke about those living in the city or in the commuter belt, where rents are higher and it is far more expensive for our public servants. In my area of responsibility, that includes people working in the disability field, people such as healthcare assistants, occupational therapists, physiotherapists and speech and language therapists. In certain CDNTs we have failed to recruit many of those professionals because of the cost of securing a property. It is no different in teaching. Perhaps other Departments such as the Department of public expenditure could look at the possibility of introducing a Dublin rate.

Paddy Burke (Fine Gael)
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I acknowledge the response by the Minister of State. I agree that the pay increases in recent years have been quite significant. Despite that, there are enormous challenges facing those young people. As the Minister of State said, those in the last year of a contract in particular have no chance of getting a loan. We all know about the Central Bank rules on accessing finance and drawing down loans and mortgages. I appreciate that the Minister of State is au fait with the problem we have here and that she will bring this back to the senior Minister. I hope the Minister will take action on both those issues.

Anne Rabbitte (Galway East, Fianna Fail)
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The Minister, Deputy Foley, provided me with these closing remarks. Housing remains a priority matter for Government, led by my colleague the Minister for Housing, Local Government and Heritage. The Housing for All strategy delivers on the programme for Government commitment to step up housing supply and put affordability at the heart of the housing system. Rent pressure zones were introduced by the Government in recognition of the rising costs of rent and are located in parts of the country where rents are highest and rising, and where households have the greatest difficulty finding affordable accommodation. They are intended to moderate the rise in rents in these areas and create a stable and sustainable rental market that allows landlords and tenants to plan financially for their future.

However, these current pressures are not unique to any one sector, and therefore a measure such as that referred to by the Deputy could not fairly be explored for any one group of workers. The Senator and I can both agree that it should be for all. The introduction of a measure such as a special rate of pay in rent pressure zones could occur only under central processes and any specific proposals would need to be considered by the Department of public expenditure.