Jan O'Sullivan (Limerick East, Labour)
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Question 161: To ask the Minister for Finance if the Financial Emergency Measures in the Public Interest (No. 2) Act 2009 will impact on any employees, such as employees at Health Service Executive grant funded agencies, who were not effected by the Financial Emergency Measures in the Public Interest (No.1) Act 2009, other than those whose incomes fall below the threshold set out in the latter; if employees in the voluntary and charity sector were explicitly excluded from being affected by this Act; if he will provide a guarantee to public servants that their income will not be further reduced during 2010; and if he will make a statement on the matter. [5323/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The definition of a public servant in the legislation governing the pension levy and the pay reductions is the same. Therefore, in general the reductions in pay under the Financial Emergency Measures in the Public Interest (No. 2) Act 2009 will apply to employees who are paying the pension related deduction. However, there are a small number of situations where the pay reductions could apply to a public servant who was not subject to the pensions levy. The pay reductions apply to employees of public service bodies, whether or not the public servant is a member of a public service pension scheme or receives a payment in lieu. Furthermore, the income exemption threshold that applies to the pensions levy does not apply to the pay reductions.

Sections 38 and 39 of the Health Act 2004 apply to HSE service providers and other bodies in receipt of funding assistance from the HSE. Organisations that are directly funded by the HSE under Section 38 of the 2004 Act are public service bodies, as defined in the Financial Emergency Measures in the Public Interest Act 2009 which provided for the pension levy deduction and the Financial Emergency Measures in the Public Interest (No. 2) Act 2009, which provided for the reduction in public service pay. Employees in these bodies have access to public service pension schemes or, in a small number of cases, the state funds an employer contribution to a private pension scheme. The pension levy and the reduction in salary apply to all these employees. Accordingly, the pay reduction legislation applies to all members of the Nominated Health Agencies Superannuation Scheme.

Under Section 39 of the 2004 Act, the HSE provides a grant towards the overall costs of running certain organisations. Neither the pension levy nor the reduction in salary applies to such employees. I do not consider it appropriate to speculate on future measures that may impact on public servants' income.