Dan Neville (Limerick West, Fine Gael)
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Question 43: To ask the Minister for Finance the added cost in terms of public service pay in 2006, 2007 and 2008, and in terms of additional programme expenditures in these years of the agreed outcome of the social partnership negotiations. [24876/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Pay — The public service pay agreement under Towards 2016 provides for a pay increase of 10% over a twenty-seven month period with an initial five months' pay pause. This increase is to apply as follows:

∙3% from 1 December 2006

∙2% from 1 June 2007

∙2.5% from 1 March 2008, and

∙2.5% from 1 September 2008.

It is estimated that the cumulative cost of implementing these increases is €45m in 2006, €750m in 2007 and €1,465m in 2008.

The payment of these increases will be dependent, in the case of each sector, organisation and grade, on verification of co-operation with flexibility and ongoing change, including co-operation with satisfactory implementation of the agenda for modernisation set out in the Agreement, maintenance of stable industrial relations and absence of industrial action in respect of any matters covered by the Agreement. Payment will be dependent on verification of satisfactory achievement of these provisions.

The new social partnership agreement "Towards 2016" also contains a wide ranging "non-pay" social agenda. Chapter three of the agreement sets out the social agenda in a "Lifecycle" framework which seeks to assess the risk and hazards, and corresponding supports, available to people at each stage of the lifecycle.

This part of the agreement, of necessity, seeks to incorporate and reflect the existing medium to long term strategies that are already in place in the broad social area such as NAP inclusion and the related revised National Anti-Poverty Strategy, the National Children's Strategy, the five year Childcare Strategy announced in Budget 2006, the national action plan for educational inclusion (DEIS), the National Disability Strategy as well as particular health, care and housing initiatives.

The further finance required for the ongoing implementation of the various measures will be considered in the context of the annual estimates and budgetary framework, subject to, as provided for in the agreement, overall macro fiscal and economic constraints. For example, the new social partnership agreement contains an objective to achieve the current revised National Anti-Poverty target of increasing the lowest adult social welfare rate to €150 per week in 2002 terms by 2007 and, subject to available resources, to maintain the value of rates at that level over the course of the agreement. Such a commitment will obviously have cost implications but the extent of such costs from year to year will be a matter for decision by Government in the context of the annual budget.

The agreement does provide for a number of additional specific social initiatives across a number of Departments, including Environment, Heritage and Local Government, Education and Science, Community Rural and Gaeltacht Affairs, Social and Family Affairs and Health and Children. The relevant Ministers will be able to provide details of the measures within their respective remits but the overall costs of these initiatives with consequent resource implications will be managed in the overall context of Government expenditure by prioritisation in its allocation decisions within the Estimates and Budget process over the next three years.

On the farming side, discussions are still continuing between the farming pillar and my colleague the Minister for Agriculture and Food.