Joe Costello (Dublin Central, Labour)
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Question 40: To ask the Minister for Finance if, in regard to his proposed 3% cut in public sector payroll, this refers to a 3% cut compared to nominal 2008 payroll, nominal 2008 payroll plus increments or forecast 2009 payroll on the basis of existing levels of service; if his proposed 3% cut in payroll is predicated on a commitment to maintain existing levels of service; and if he will make a statement on the matter. [31351/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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On 8 July last, I announced a number of cost saving measures that the Government had decided to implement with immediate effect. These measures included a 3% reduction in the payroll bill of all Departments, State Agencies and Local Authorities, with the exception of certain sectors of the Health and Education areas. The savings resulting from this measure were projected to be €10 million in 2008 with a further €250 million accruing by the end of 2009. The 3% payroll reduction for 2009 is calculated on the basis of the 2008 nominal payroll, less the €10 million saving referred to, as increased by the full year cost in 2009 of the 1 September 2008 pay increase made under Towards2016.