Stephen Donnelly (Wicklow, Independent)
Link to this: Individually | In context

Question 249: To ask the Minister for Public Expenditure and Reform his views that the payment of approximately €250 million this year in pay rises for public sector workers in the form of increments is an appropriate use of scarce budgetary resources at this time; if he accepts that payment of these increases is linked directly to having to lay off public sector workers who are not on fixed term contracts; if he intends to pay them this year, and over the lifetime of this Government; and if he will make a statement on the matter. [4177/12]

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

Based on more detailed information recently requested by my Department on the total cost of increments in a full year in the various sectors, the estimated full year cost of increments in the public service (excluding the Local Authority sector) is now estimated at no more than €180 million per annum and will be less than half that sum in 2012. Significantly reduced recruitment, the ongoing substantial fall in numbers of public servants, and higher numbers reaching the maxima of scales will ensure this cost will continue to fall over the coming years.

I do not accept that the cost of increments is resulting directly in the lay off of public sector workers. Indeed under the Protection of Employees (Fixed Term Work) Act, 2003 public service workers who are employed under fixed term contracts, which I take to be the intended question of the Deputy, have an entitlement to similar terms and conditions of employment, including increments, as their permanent comparator public servants save with regard to the termination of their contract. While permanent employment has been the norm in the public service, employees on fixed term contracts are now widely employed in many sectors of the public service.

The Government has reaffirmed the key commitments under the Public Service Agreement 2010-2014 including that there will be no further reductions in pay rates, for serving public servants. These commitments are contingent on delivery of the necessary flexibilities and reforms to public service delivery that are required under the Agreement.

The allocation of all resources including those to pay public servants can and should be open to debate. However, I consider that there are fairer ways to control the cost of public pay, given that only a proportion of public servants, in particular lower paid and front line staff, would be affected by a suspension of increments. The other measures adopted by this Government, building on those taken in the past, will ensure that the total cost of the Exchequer paybill will have fallen by some €3.5 billion, or 20%, in the seven year period from 2008-2015. My Department is continuing to vigorously pursue further cost saving measures that are fair, targeted, and appropriate across the public service.