Written answers

Tuesday, 25 November 2008

Department of Finance

National Partnership Agreement

10:00 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 167: To ask the Minister for Finance if the State may avail of the inability to pay clause of the national pay agreement; and if he will make a statement on the matter. [42139/08]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The specific provision of the Agreement for dealing with a claim of inability to pay relates to the private sector only. Where inability to pay is claimed, the onus is on the employer to convince the union of the case. If the parties still disagree, the matter is referred to the Labour Relations Commission (LRC). At LRC stage, assessors may be appointed to examine the economic, commercial and employment circumstances of the employment involved. In the event of no agreement being reached at the LRC, the matter is referred to the Labour Court and the onus is on the employer to convince the Court of their case.

It is a matter for the Court to determine whether the employer can or cannot pay the terms of the Agreement and the parties are bound to comply with the findings. I do not consider that an arrangement along these lines would be appropriate in the case of the public finances, where Government alone has an obligation to prioritise spending across a range of policy areas, from within available resources, on the basis of provisions voted by the Dáil.

As the Deputy will be aware, the agreement already provides for a pay pause of 11 months in the public service from the expiry of the last agreement on 30 September 2008. This compares to a pause of 3 months in the private sector. Therefore, no increase will arise in the public service until 1 September 2009. I am, of course, keeping public service pay under ongoing review.

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