Written answers

Tuesday, 3 March 2009

Department of Finance

Departmental Staff

10:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 139: To ask the Minister for Finance the estimate of the annual general Government savings in 2009 to 2013 of an indefinite suspension of the national pay agreement. [8929/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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Based on current staffing and numbers, the estimated savings in public service pay and pension costs from not paying the terms of the Review and Transitional Agreement for the years in question are as follows:

Yearâ'¬m
2009230
2010990
20111,200
20121,200
20131,200

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 140: To ask the Minister for Finance the estimate of the annual general Government savings in 2009 to 2013 of a suspension in the payment of annual salary scale pay increments to public sector workers. [8930/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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It is estimated that the annual cost of increments for the areas covered by the public service pay bill is of the order of €250m. No provision is made in the annual Estimates for increments on the basis that the additional cost is generally offset by other staff movements.

In assessing the effect of suspending increments, it is important to understand that not all public servants receive increments. Incremental progression is a system which is not unique to the public service, whereby persons in a number of grades move gradually to the maximum pay of the grade subject to satisfactory performance. Once the maximum pay has been reached, no further incremental payments are made. Suspending increments would, therefore, affect some public servants but would have no effect on others.

Generally, incremental scales are longer for lower grades than for higher grades. Accordingly a higher proportion of staff in lower grades would be affected by a suspension of increments. Most of the highest paid grades in the public service, i.e. the heads of organisations, do not receive increments as their salaries are single points.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 141: To ask the Minister for Finance the estimate of the annual general Government savings in 2010 to 2013, over and above those secured through the suspension of the national pay agreement, of cuts in public sector pay of 5% for persons earning between €60,000 and €100,000, 10% for those earning between €100,000 and €200,000, 20% for those earning between €200,000 and €300,000 and 30% for all those earning more than €300,000. [8931/09]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 142: To ask the Minister for Finance the estimate of the general Government savings, over and above those secured through the suspension of the national pay agreement, of graduated or incremental cuts in public sector pay, of 5% of all earnings between €60,000 and €100,000, 10% of earnings between €100,000 and €200,000, 20% of earnings between €200,000 and €300,000 and 30% of earnings more than €300,000. [8932/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 141 and 142 together.

It is estimated that a saving in excess of €300m would be achieved in each of the years in question through the application of percentage cuts as set out by the Deputy. The figure does not include the local authority area which is outside of the public service pay and pensions bill. The Deputy will, of course, appreciate that the numbers in different bands will vary from time to time depending on matters such as incremental movement, retirements, the incidence of payment of overtime and allowances to medical staff and the impact of the European Working Time Directive. In addition, the final uptake of the various contract types among medical consultants can only be estimated at this stage. There would also be savings from the pensions bill as any reduction in pay would have a knock-on reduction on pensions.

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