Terence Flanagan (Dublin North East, Fine Gael)
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Question 98: To ask the Minister for Public Expenditure and Reform his views on a matter (details supplied) regarding December's budget; and if he will make a statement on the matter. [33889/11]

Brendan Howlin (Wexford, Labour)
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As the Deputy is aware my colleague, the Minister for Finance will introduce the Budget in early December, and I am not in a position to pre-empt what will be contained in that Budget.

Pay rates in the public service have already been reduced by up to 15% and a progressive pension related reduction applied through the Financial Emergency Measures in the Public Interest Acts of 2009. More recently, the Government accepted my proposals to introduce a general pay ceiling of €200,000 for future appointments to higher positions across the public service, a general pay ceiling of €250,000 forfuture appointments to CEO posts within Commercial State Companies and a voluntary waiver system of up to 15% for current post holders who have salaries in excess of the relevant pay ceiling.

Under the Joint Programme of Assistance the Government is committed to continued falls in the overall cost of the public service pay bill. This will be achieved through planned reductions in the numbers of public servants as set out in the Programme for Government and through greater efficiencies in the way in which public services are delivered.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 99: To ask the Minister for Public Expenditure and Reform the cost in 2011 of payment of public service pay increments. [33916/11]

Brendan Howlin (Wexford, Labour)
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Increments within the Public Service vary in terms of timing, cost and application both within and across the various sectors of the Public Service and estimates of cost are of necessity, tentative.

It has been estimated that the annual cost in a full year of increments would be around €250 million. However, significantly reduced recruitment and higher numbers on the maxima of scales will mean that this cost will reduce in the coming years and will be affected by other factors. These include retirements, voluntary redundancies, number reductions, recruitment rates and the numbers of employees reaching the maximum of the scale, which cannot be quantified.

No specific provision is made in the financial allocations to public service bodies as they are required to meet the cost within their allocations.

Suspending increments would affect some public servants but would have no effect on others. Generally, incremental scales are longer for lower paid than for higher. Accordingly a higher proportion of lower paid including front line staff would be affected by a suspension of increments.