Paul Murphy (Dublin South West, Socialist Party)
Link to this: Individually | In context | Oireachtas source

209. To ask the Minister for Public Expenditure and Reform if the reversal of pay cuts and an increase in pay will be discussed with the relevant trade unions; and if he will make a statement on the matter. [18242/15]

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

As I have already outlined, 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 engage in any negotiations in public. When the economic crisis determined that further reductions were required of public servants in 2013, the Haddington Road Agreement was secured by negotiation and discussion with the representatives of those directly affected. I believe a similar approach in the current circumstances is also appropriate.

Further formal discussions will take place over the coming weeks and, although 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 which has now been set out in the Spring Economic Statement. Through the  Haddington Road Agreement (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.  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 end of the period of acute financial emergency which necessitated the introduction of the FEMPI legislation by the previous Government is now in sight because of the actions of this Government.  Planning for the orderly wind down of this legislation in an agreed and sustainable process, rather than risking a successful legal challenge, is the appropriate and prudent approach.  But I am conscious that 2015 will be the seventh successive year in which no pay increases will be made to public servants while they have suffered at least two and in some cases three pay reductions over that period.

I expect that all sides to these discussions will meet with the aim and intention of making an agreement that is fair to all involved, those who avail of public services, employers, and public servants themselves, and an agreement that sustains the continuing economic recovery.