John McGuinness (Carlow-Kilkenny, Fianna Fail)
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To ask the Minister for Public Expenditure and Reform if he is concerned by the potential long term impact on recruitment and retention in the public sector from the range of reductions in pay scales and allowances for newly recruited staff; and if he will make a statement on the matter. [51645/12]

Brendan Howlin (Wexford, Labour)
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The reduction by 10% of the salary scale and fixed allowances for new entry grades to the public service was implemented by the previous government with effect from 1 January 2011 and remains in place. The stated purpose of the measure was to achieve a medium term structural reduction in the pay bill cost of the public service, and as a contribution towards improving Ireland’s competitiveness. The measure also had regard to the Public Service Agreement 2010-2014 (Croke Park Agreement) which provides for no reduction in the rate of pay of serving public servants.

Following the outcome to the recent review by my Department of allowances in the Public Service, certain allowances will not be paid to new beneficiaries as no sustainable business case was made for continuation of the payment of the allowances to new employees. As part of the next steps of the review process, my Department has written to sectoral management instructing them to immediately engage with staff interests with a view to securing their early agreement to the elimination of those departmental allowances payable to current beneficiaries, where no business cases exists to pay those allowances to new beneficiaries. These measures will contribute to a continued and sustainable reduction in the public service pay bill in a period where pressure on the public purse and the need for cost reduction and containment measures is unprecedented. While recruitment to the public service is limited, the available evidence from recent recruitment campaigns indicates that employment in the public service continues generally to attract large numbers of well qualified applicants.