Written answers

Thursday, 19 November 2015

Department of Public Expenditure and Reform

Fiscal Policy

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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86. To ask the Minister for Public Expenditure and Reform the extent to which the benefits accruing from the Haddington Road and Croke Park agreements are in line with expectations, with particular reference to the need to ensure the targets are met; and if he will make a statement on the matter. [41091/15]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I am satisfied that the Croke Park Agreement delivered on its objectives by facilitating significant cost savings amounting to €1.8 billion over its lifetime, with the vast majority of commitments around reform being delivered.  This was a view shared by the Implementation Body in their final report.

As part of the measures required to repair the Government finances and meet our international commitments to reach the GDP Deficit target of 3% by end 2015, it was necessary in 2013 for the Government to secure agreement (the Haddington Road Agreement) with Unions and Associations representing public servants for the introduction of significant productivity measures and also additional  pay cuts for public servants earning over €65,000.

Given the scale of the fiscal crisis facing the country and the fiscal consolidation measures required to restore our finances, the contribution made by public servants has been significant. 

In addition to delivering on monetary targets, a number of reforms and changes to work practises, such as additional working hours, have been implemented since 1 July, 2013. Approximately 15 million additional hours have been provided by staff right across the Public Service. These reforms have contributed to the maintenance and enhancement of existing public services during a period of significant constraints on public expenditure and at a time when public services were under increasing demand.

Due to the difficult measures adopted and the resulting improvement in the economy, it has allowed the Government to commit additional resources and improve services in a number of key areas including the Health, Justice and Education sectors while remaining firmly within our fiscal parameters including meeting the GDP Deficit target of less than 3% in 2015. The significant improvement in the fiscal position has also enabled the Government to bring forward a series of proposals under the Financial Emergency Measures in the Public Interest Bill 2015 to provide for  an ameliorisation and gradual unwinding of the fiscal emergency measures impacting on public servants with effect from 1 January 2016.

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