Written answers

Thursday, 21 November 2013

Department of Public Expenditure and Reform

Public Sector Reform Implementation

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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86. To ask the Minister for Public Expenditure and Reform the degree to which all unions and management throughout the public service have met their targets on an annual basis over the past three years in respect of savings required in line with the troika agreement; and if he will make a statement on the matter. [50053/13]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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87. To ask the Minister for Public Expenditure and Reform the extent to which all unions and management have entered into the spirit of the Haddington Road agreement; and if he will make a statement on the matter. [50054/13]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I propose to take Questions Nos. 86 and 87 together.

The Government's commitment to the EU/IMF programme of financial support remains firm as is clearly illustrated by a continued strong record in implementing the agreed policy frameworks and measures while meeting all quantitative targets. Indeed, data released in the Exchequer Statement of 2 October indicated that the Exchequer primary deficit target outlined in the EU/IMF programme was met for the twelfth consecutive quarter.

In order to achieve the general government deficit target of below 3% of GDP by 2015, all components of the public finances must make an appropriate contribution. In this context, reducing the Exchequer Pay Bill has been an important element in reducing public expenditure. Public Servants have made a significant contribution to the fiscal recovery of the State, through a number of measures which have helped to reduce the Public Service pay bill from its peak of €17.5 billion in 2009, to an estimated €14.1 billion in 2013.

Public Service management has worked with staff representatives to secure significant cost reductions and to deliver necessary reforms and work place changes, through the Public Service Croke Park agreement and most recently through the Haddington Road agreement. The benefits of the Croke Park agreement have been significant as evidenced by the final report of the Implementation Body. That report concluded that the agreement facilitated significant cost savings, amounting to €1.8 billion over its lifetime, comprising of almost €1 billion in pay savings and over €800m in non-pay efficiency savings. The Body also concluded that the vast majority of commitments around cost extraction, reforms and changed work practices had been substantially delivered.

More recently, the Haddington Road agreement, which came into force on 1 July, sets out a number of measures aimed at reducing the public service pay and pensions bill by €1 billion by 2016. In addition to these cost saving measures, the Agreement also provides for an additional 15 million working hours across all sectors of the Public Service. The additional hours will ensure that public service management is able to maintain service delivery while also enabling the delivery of the Government’s ambitious reform agenda.

It is the responsibility of Public Service managers across every sector of the Public Service to make full use of these additional hours and the other hard-won workplace flexibilities agreed in Haddington Road. In order to harness the full potential of these additional hours, it will be essential that public service management continue to evaluate innovative ways of utilising these hours over the next three years.

Where public service unions and the Government sign up to collective agreements, in this case the Haddington Road agreement, I am satisfied that both unions and management are committed to the delivery of the terms of those agreements.

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