Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

26. To ask the Minister for Public Expenditure and Reform if he will report on the agreement under the Croke Park agreement deal that savings made from the deal would restore pay to those earning under €35,000 per year; and if he will make a statement on the matter. [5746/15]

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

The Deputy will be aware that there are two measures which currently underpin public service pay and pensions policy: the Financial Emergency Measures in the Public Interest Acts (or FEMPI) and the Haddington Road Agreement (HRA).  The nature of the Financial Emergency Measures legislation is that the powers granted by the Oireachtas under the legislation are temporary in nature and are predicated on the continuing financial emergency in the State.   The HRA is due to last for 3 years from 1 July 2013 and, in the Government's view, sets the parameters for pay policy in the public service for its three year length.

The Haddington Road Agreement also reaffirms the committment made previously in the Croke Park agreement to give priority to public servants with pay rates at €35,000 or less in any review of the pay measures.  Section 2.3 of the HRA confirms that when economic circumstances allow, and the public finances are restored to a sustainable position, the pay measures applied to public servants under the HRA and the FEMPI legislation will be reviewed.   

As provided for under section 12 of the FEMPI Act 2013, I am required to conduct an annual review, and lay a written report of my findings before each House of the Oireachtas.  My last review was laid before the Houses of the Oireachtas on 29th June 2014. In that review I concluded that there is a need to continue to apply the relevant provisions of the legislation controlling the cost of remuneration of public servants and the other measures controlling the cost of the public service pay and pensions bill. It is worth restating that the expenditure proposals as set out in Budget 2015 are based, in part, on the reduced public service pay rates, as well as on the revenue accruing from the Pension Related Deduction and Public Service Pension Reduction as provided for under the Financial Emergency Measures in the Public Interest Acts.

As well as the statutory requirement for an annual report to be made by me as Minister to the Oireachtas on the operation of the Acts, the legislation is maintained under constant review to ensure only those measures absolutely necessary are maintained on the statute book.  The legal position concerning the financial emergency legislation, which has underpinned the reductions to date, will also have to be addressed as part of putting in place more normal pay setting arrangements in the public service for the future. 

As the pay setting environment normalises across the economy, it is important that the Government give consideration as to how, over the medium term, pay policy needs to develop in the public service, to help ensure that overall fiscal targets including achieving a deficit of less than 3% of GDP by the end of 2015, will be met.  In addition, 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.