Written answers

Wednesday, 23 January 2013

Department of Public Expenditure and Reform

Public Sector Reform Implementation

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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To ask the Minister for Public Expenditure and Reform the extent to which pay and conditions in the public sector here have reformed in line with our EU, Eurozone and non-Eurozone partner; the extent to which cost of living comparisons have been made; and if he will make a statement on the matter. [3297/13]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Addressing the fiscal crisis that faces Ireland presents enormous challenges to all citizens of the State. The public service pay and pension bill at 36% of spending is an important constituent element on which a substantial part of the burden of adjustment has and must continue to fall. It is this significant fiscal deficit, and the need to reduce it in accordance with the EU/IMF Programme, which is the primary driver for the ongoing reduction required in the cost of the public service pay and pension bill on which talks have commenced with staff representatives.

While comparisons of public servants pay rates across different countries are not widespread, the best available figures, those published by the OECD as part of its “Government at a Glance 2010” report, do not show Irish public service pay rates to be significantly out of line with other OECD countries across a broad range of disciplines on a purchasing power parity basis. Furthermore, the statistics on which the OECD based its report predate the pay reductions applied to all public servants, on a progressive basis, under the Financial Emergency Measures in the Public Interest (No. 2) Act 2010. The pay reductions applied to higher paid public servants under that legislation were based on the recommendations of the Review Body on Higher Remuneration in the Public Sector, which conducted a cross-country comparative exercise on pay rates for certain senior grades. On foot of that, the then Government cut the pay of the highest paid public servants by between 8 and 20%. A further reduction of 10% was applied to the pay rates of new recruits at entry level across the entire public service on 1 January 2011.

This Government, to help ensure that pay expectations for higher paid public servants are set appropriately and having regard to the resources available to the State, has applied a further reduced pay ceiling at the highest levels in the public service. That policy brings pay levels at senior levels in the public service in line with those the Government accepted for itself. In addition significant reductions in non pay terms of employment have been secured including standardisation and reduction in annual leave entitlements and a reduction in sick pay entitlements to a level less than those available to public servants in other EU member states.

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