Written answers

Wednesday, 10 February 2010

Department of Finance

Public Sector Pay

10:00 pm

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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Question 146: To ask the Minister for Finance the date that it was decided to reduce the pay cuts for certain senior public servants; and the discussions that took place prior to this decision. [7130/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The position regarding the remuneration of the Assistant Secretary Grade was considered by Cabinet on 9 December 2009 in the context of its discussion on the draft legislation providing for reductions in public service pay. It was recognised that the draft legislation could allow the particular circumstances of the grade to be addressed although no decision was taken on the manner in which this might be done.

Section 6 of the Financial Emergency Measures in the Public Interest (No. 2) Act 2009, which came into force on 21 December 2009, provides that the Minister for Finance, may by direction exempt or vary the application of the pay reductions provided for in the Act to public servants or groups of public servants in certain limited circumstances. On 22 December, 2009, I formally directed under Section 6 that in the reduction of salary for the Assistant Secretary and Deputy Secretary grades in the civil service, and for certain public service grades related to the Assistant Secretary and Deputy Secretary grades, account should be taken of the termination of performance related pay.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 147: To ask the Minister for Finance if his attention has been drawn to the fact that persons in job sharing arrangements have suffered a pay cut based on the rate applicable to full-time earnings, which in the tiered structure is higher than that paid by other persons with equivalent earnings; and if he will make a statement on the matter. [7203/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I refer to my reply to Parliamentary Question No: 4890/10 of 2 February 2010: "The pay reductions provided for in the Financial Emergency Measures in the Public Interest (No. 2) Act 2009, apply to the instruments setting rates of pay. It is a well established principle that the pay of job or work sharers and those on atypical work patterns is calculated by reference to the whole time equivalent pay rate for the grade or post in question. The reduced pay rates are, therefore, calculated in this way which is consistent with the legislation governing the conditions of employment of part-time workers. Accordingly, the reduction in the rate of pay for full time and job sharing public servants is the same and any change in this relationship would create an inequity in the rate of pay for those doing similar work. The option of those currently work sharing to increase their hours or return to full time duties will be dictated by the service needs and resources of the public service body where those public servants are employed.

The Pension Related Deduction (PRD) commenced in 2009 during which the PRD was in effect for 10 months. In 2010 the application of this deduction over 12 months results in a slightly higher PRD being deducted with effect from 1 January. However, this increase will be offset to some extent as earnings of public servants will reduce due to the application of reduced rates of pay in 2010."

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