Michael McGrath (Cork South Central, Fianna Fail)
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Question 70: To ask the Minister for Finance, in view of recent public commentary and in the context of obligations provided for in individual contracts of employment and social partnership, the discretion he has not to pay salary increments for employees moving along a pay scale, to public servants such as gardaí, teachers and nurses, for the first nine months of 2009. [43343/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Increments are part of the terms and conditions of most public servants. In accordance with normal industrial relations practices and agreements, any proposal for a change in the present arrangements relating to increments would have to be discussed with the public service unions. If agreement could not be reached on a proposed change, it would be open to the unions to seek third party adjudication on the matter.

Increments are not pay increases in the normal sense or bonuses for public servants, as has been portrayed in some media reports. Rather than being placed on the maximum salary on appointment to a grade, public servants in most grades are placed on incremental salary scales and reach the maximum pay for the grade only after a number of years and subject to satisfactory service. It is important to note that year-on-year increases in allocations would not normally be granted for increments. Accordingly, there is no increased provision for increments in the pay bill in 2008 and no increased provision will be made in 2009 either.

In the normal way, the overall cost of increments for staff on incremental scales should be offset by reductions in cost arising from retirements or other movements by staff. It is difficult, therefore, to estimate the cost of increments. However, if all increments due for payment in the public service in 2009 were not to be paid, the saving would be somewhere in the region of €250m for a full year. The cost attributable to the first nine months would be three quarters of this figure.