Ruairi Quinn (Dublin South East, Labour)
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Question 351: To ask the Tánaiste and Minister for Education and Skills if her attention has been drawn to the fact that the recent public sector pay cut to contract researchers in higher education institutions, are being viewed by the European Commission as a breach of contract in respect of that body's funding of the Marie Curie fellowships in Irish universities; if her attention has further been drawn to the fact that no more funding for these scholarships will be forthcoming from the EU Commission; the steps he will take to remedy this problem; and if she will make a statement on the matter. [18726/10]

Mary Coughlan (Donegal South West, Fianna Fail)
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I am not aware of any proposal from the Commission to cease funding for these scholarships. The Financial Emergency Measures in the Public Interest (no. 2) Act 2009 has determined the criteria for reducing the pay of public servants with effect from 1st January 2010. In this Act, a "public servant" is defined as a person who is employed by, or who holds any office or other position in, a public service body. A public service body is defined as one which receives direct or indirect funding and to which a public service pension scheme exists, or applies, or may be made.

Under the terms of the Act, universities are considered to be public service bodies. The Act does not distinguish between those employees who are members of a public service pension scheme and those who are not. Nor does it distinguish between those whose salaries are wholly paid from monies provided by the Exchequer and those whose salaries are funded from other sources.

The position is that all persons employed by a university, regardless of how their salaries are funded and irrespective of whether or not they are members of a public service pension scheme, are by definition public servants within the meaning of the Act. I understand that the researchers referred to by the Deputy are those in receipt of Marie Curie Fellowships from the European Commission. Although their salaries are funded by the European Commission, these researchers are hosted by a university and have their employment contract with that institution. It is for this reason that the pay reduction has been applied to the Marie Curie Fellows in the same way as it has to all other researchers and employees of these institutions. Section 6 of the Act contains provision to allow the Minister for Finance to exempt either certain public servants, or classes or groups of public servants from the operation of the Act, either entirely or to such extent as the Minister considers appropriate in the event where exceptional circumstances exist.

I am aware that representations have been made for an exemption to be provided in the case of Marie Curie researchers. The Deputy will be aware, however, that any consideration in this case must take into account the wider implications of such an exemption for other staff in the institutions and across the public sector.