Michael Ring (Mayo, Fine Gael)
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Question 38: To ask the Minister for Finance his target for the growth of the public service wage bill over the next four years; and the way in which it compares with the growth in that wage bill over the past four years. [18367/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The net public service pay bill over the period 2001 to 2004 was:

The net public service pay bill for 2005 is estimated at €14,953 million — an increase of 8.8% over the previous year.

For the remainder of the current public service pay agreement the increases due to be paid are: 1.5% on 1 June 2005, 1.5% on 1 December 2005 and 2.5% on 1 June 2006. In addition, the final phase of the benchmarking increases, on average about 2.25%, is due to be paid with effect from 1 June 2005. The application of these increases and other factors such as increments, etc., give the following estimated, post-budget 2005, net public service pay bill totals:

These 2006 and 2007 figures and projections for 2008 are being considered in the context of the preparations for the 2006 Estimates and the preparation of existing level of service projections for 2006-08. No contingency has been provided for any post Sustaining Progress agreement in the above figures.

The current pay agreement under Sustaining Progress begins to run out for private sector workers at various dates from the end of 2005. The public service pay agreement does not expire until the end of June 2006. Talks on a new agreement to follow Sustaining Progress will commence in the autumn of 2005. Increases agreed in any new pay deal to follow Sustaining Progress will not be implemented in the Civil Service until after 30 June 2006.