Michael McGrath (Cork South Central, Fianna Fail)
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242. To ask the Minister for Public Expenditure and Reform the provisions of the financial emergency measures in the public interest legislation that are due to expire at the end of 2015; and if he will make a statement on the matter. [29765/15]

Brendan Howlin (Wexford, Labour)
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The measures contained in the Financial Emergency Measures in the Public Interest Acts 2009-2013 (FEMPI) continue in force, and continue to make a significant contribution to meeting our international fiscal obligations including bringing the general government deficit below 3 per cent of GDP. However, the measures provided under the legislation should only represent those that are critical to the achievement of our fiscal targets.

As provided for under section 12 of the FEMPI Act 2013, I am required to review annually the provisions, which gave effect to the reductions in the pay and pensions of public servants.  Section 12 also requires that a written report of my findings is laid before each House of the Oireachtas.  My most recent review was laid before the Houses of the Oireachtas at the end of June 2015 and is available in the Oireachtas library.

In my review, I determined that, while we have seen clear signs of improvements in our economy and our public finances, any immediate reversal of the reductions in public service pay or pensions would significantly compromise our ongoing progress towards ensuring fiscal stability and meeting our fiscal consolidation targets. However,  I also found that it is appropriate and prudent, taking account of the improvements brought about in the public finances, the continuing risks which remain and the need to meet our commitments to have a prudent fiscal policy under the Stability and Growth Pact, to-  

a. continue to apply the public service Pension related Deduction while bringing forward legislative amendments to reduce the impact of this measure with effect from 1 January 2016,

b. maintain provisions in the legislation which allow the reduction of payments to health professionals but that, in consideration of the continuation of such measures from 2016, regard will be had to the need to commence the gradual amelioration of the measures as they apply to those affected,

c. continue to apply the relevant provisions controlling the cost of remuneration of public servants, and other measures controlling the cost of the public service pay and pensions bill, while bringing forward legislative amendments to the Financial Emergency Measures in the Public Interest Act (No. 2) Act 2009 and the 2013 Act to reduce the impact of these measures with effect from 1 January 2016, and

d. continue to apply the Public Service Pension Reduction as imposed by the legislation and amended by the 2013 Act while bringing forward legislative amendments to reduce the impact of this measure with effect from 1 January 2016.