Richard Bruton (Dublin North Central, Fine Gael)
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Question 176: To ask the Minister for Finance the saving in 2009 of the 4% reduction in public service pay off 2008 outturn; the sectors that have been excluded from this requirement; the cost in 2009 of the carryover from pay settlements made earlier; the cost in 2009 of the new increase due in August 2009; the carryover cost of extra staff employed in 2008 on the 2009 pay bill; the additional employee numbers expected to be taken in 2009 and the extra pay bill involved; and if he will reconcile these elements with the final figures for the increase in gross public service pay and in gross public service pensions. [43921/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Government decided in July 2008 to secure payroll savings of 3% for Government Departments and public bodies, with the exception of primary and secondary level teachers and Special Needs Assistants in the education sector and staff involved in the direct delivery of essential health services. This decision is reflected in the Estimates for 2009 through savings of €260 million that would otherwise have been included in the allocations for pay. The Government subsequently decided that Government Departments and public bodies would have to meet the cost of the pay increase due in September 2009 from within the existing pay provisions set out in the Budget for 2009. The savings arising from this measure will amount to an additional €234 million in 2009. The combined effect of both these elements is equivalent to 4% of payroll for Government Departments and bodies in 2009, with the exception of the health and education areas referred to above.

The estimated carryover cost of pay increases (net of pensions) awarded in 2008 is €372 million. Based on staff number projections supplied to my Department in preparation for the Budget, it is projected that the number of Civil and Public Servants (excluding Local Authority employees whose pay is not included in the Estimates) employed at the end of 2008 will be some 4,428 higher than at the end of 2007. The corresponding projection for the end of 2009 over 2008 shows an overall reduction of 280 staff.

The pay and pensions allocation included in the 2009 Estimates is €20.042 billion (including €1.765 billion for pensions) in gross terms, an increase of €610 million over the figure in the 2008 Revised Estimates Volume. There are a number of factors which explain this increase including:

€106 million increase for pensions (carryover cost of general increases made in 2008 and increases in the number of pensioners);

€224 million for the full year cost of additional teachers and Special Needs Assistants taken on in 2008;

€170 million in the health area (€140 million for the new consultants' contract and €30 million for Industrial Relations settlements); and

€110 million, which is a residual figure after factors such as the 2008 pay increases and the payroll reduction are taken into account.