Lucinda Creighton (Dublin South East, Independent)
Link to this: Individually | In context | Oireachtas source

101. To ask the Minister for Public Expenditure and Reform his plans to initiate discussions with the public sector unions regarding the modification of pay cuts; and if he will make a statement on the matter. [47787/14]

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

The Haddington Road Agreement came into effect on 1 July 2013 and forms the cornerstone for public serice pay policy over a three year period. Over the first 17 months of its lifetime, the Agreement has been a key enabler in reducing the cost of the public service pay and pensions bill. The cost reductions and productivity increases, and the reform dividend which the Agreement has facilitated, have allowed the Government the scope in 2014 to recruit additional staff to key frontline services. This demonstrates that the Agreement is delivering and is making a significant contribution to the Government's fiscal consolidation deficit target of below 3% GDP by 2015. Public expenditure estimates and allocations in respect of Budget 2015 are based upon the cost reductions and savings provided for by the Haddington Road Agreement.

The public service unions have indicated their intention, should the State's financial circumstances permit, to lodge a pay claim next year. If such a claim is made the Government will of course have to consider it, in line with the prevailing fiscal position. The legal position concerning the financial emergency legislation, which has underpinned the public service pay and pension reductions to date, will also have to be addressed in that context while ensuring that this country has a sustainable pay arrangement over the longer term.