Liz McManus (Wicklow, Labour)
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Question 33: To ask the Minister for Finance the provision for pay increases and increments that has been made in respect of public sector pay in Budget 2009; and if he will make a statement on the matter. [45351/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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No specific provision has been made for the cost of the first phase (3.5%) of the new agreement: Towards 2016 — Review and Transitional Agreement 2008-09, scheduled for 1st September 2009. The cost arising would have to be found from within existing allocations. There is also a pay contingency amount of €40m provided for in 2009.

No additional provision has been made for increments for 2009. Year-on-year increases in allocations would not normally be granted for increments. 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.