Ruth Coppinger (Dublin West, Socialist Party)
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194. To ask the Minister for Public Expenditure and Reform his views on the need to increase public sector pay, following discussions with public sector workers and their unions; and if he will make a statement on the matter. [18227/15]

Brendan Howlin (Wexford, Labour)
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As indicated in previous responses, following consultation with my Government colleagues I issued an invitation to the representative organisations for public servants to enter discussions with public service management. Those discussions have commenced today, and I am sure that the Deputy will understand, in the circumstances, my reluctance to seem to be engaging in any negotiations in public. Further formal discussions will take place over the coming weeks and, although obviously I am not in a position to predict when the talks will conclude, early agreement will facilitate assignment of resources and budgetary planning in respect of 2016 and beyond.  

The Government considers that any pay agreement should be prudent, modest and sustainable in the overall budgetary context as now set out in the Spring Economic Statement. Through the  HRA and its predecessor the Croke Park Agreement, together with the FEMPI legislation, public servants have made a significant contribution to the fiscal recovery of the State including by way of  direct reductions in pay and pensions.  I want to make it clear that all public servants from the lowest paid to the highest have contributed. From 2009 to 2014 the cost to the Exchequer of public service pay was reduced by €3.7 billion, or more than 21%.  Notwithstanding our improving economy, because of the magnitude of these reductions, the Exchequer could not sustain the immediate restoration of such reductions.  I have stated previously that there need to be realistic expectations, on both sides, regarding what can be achieved in the forthcoming talks' process. The HRA reiterates the commitment to give priority to those public servants on salaries of less than €35,000 p.a. 

Public Servants have made a significant contribution to the fiscal recovery through a number of productivity measures.  Without this productivity contribution, we would not be in a position to discuss any element of the unwinding of the Financial Emergency Measures legislation.  Reform is now a constant part of employment for public servants and is a central element of my strategy to deliver a public service that will, in turn, deliver improved outcomes for all stakeholders, including the business sector and citizens.  My intention is that any agreement reached will maintain and build upon the productivity and other reforms delivered through earlier Agreements including the Haddington Road Agreement and secure an Industrial Relations framework that will foster and support further productivity and change at the level of the workplace.