Written answers

Tuesday, 31 May 2016

Department of Public Expenditure and Reform

Public Sector Staff Remuneration

Photo of Joan CollinsJoan Collins (Dublin South Central, Independent)
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51. To ask the Minister for Public Expenditure and Reform when he will end the two-tier pay scales in the public service. [12535/16]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The issue of addressing the difference in incremental salary scales between those public servants who entered public service employment since 2011 and those who entered before that date was addressed with the relevant union interests under the provisions of the Haddington Road Agreement (HRA). Any further consideration of remuneration for any group of public servants, including issues relating to more recently recruited public servants, will fall to be examined within the provisions of the Public Service Stability Agreement 2013 -2018 (Lansdowne Road Agreement). It will also of course have to comply with the terms of the Financial Emergency in the Public Interest Acts 2009 - 2013 (FEMPI), as well as its affordability being underpinned through delivering enhanced work place practices and productivity.

It is particularly worth noting that under the Lansdowne Road Agreement (LRA) the process of restoring public service pay is commencing. An important feature of this process is the flat rate increases which are being implemented and which are proportionately more valuable to those public servants who are at an early stage in their careers.

The Programme for Government also states that Government will establish a Public Service Pay Commission to examine pay levels across the public service. The precise structure of such a commission and the technical aspects as to how it would operate have yet to be decided upon and would require broad consultation, including engagement with staff representatives as was committed to in the Lansdowne Road Agreement. My officials have begun to review international best practice in respect of public service pay determination models. This will help frame the Government's thinking on how to establish a fair, transparent and accountable process for determining public service pay, taking into account the views of all stakeholders.

Photo of Ruth CoppingerRuth Coppinger (Dublin West, Anti-Austerity Alliance)
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52. To ask the Minister for Public Expenditure and Reform to bring forward the restoration of pay and pay equality for public servants; and if he will make a statement on the matter. [12995/16]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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From the period 2009 to 2013 the Financial Emergency Measures in the Public Interest (FEMPI) Acts introduced pay reduction measures. These measures, together with the Public Service Pension Reduction (PSPR) implemented in January 2011, are estimated to have resulted in over €2.2bn in direct reductions in public service remuneration and pensions.

In relation to pay equality the issue of addressing the difference in incremental salary scales between those public servants, who entered public service employment since 2011 and those who entered before that date was addressed with the relevant union interests under the provisions of the Haddington Road Agreement (HRA). More recently the Government has, through the negotiation and agreement of a financially prudent public service agreement on pay and related issues, provided for a gradual unwinding of the FEMPI measures as they apply to public servants. The terms of this agreement, the Lansdowne Road Agreement, are being implemented under the Financial Emergency Measures in the Public Interest Act 2015 with effect from 1 January 2016 at a full year cost of €844m to 2018. Additional provision has also been made for an amelioration of the PSPR for public service pensioners at an additional full year cost of €90m in 2018. This approach has also enabled additional resources to be assigned for the ongoing recruitment of additional front line public service staff such as Gardaí, Teachers and Health professionals to support the delivery of our vital public services.

Under section 12 of the FEMPI Act 2013, I am required to review the necessity of FEMPI legislation annually and cause a written report of my findings to be laid before each House of the Oireachtas. In that context, economic progress and fiscal consolidation in the years ahead will determine the scope and timing of the possible further scale-back or repeal of the measures provided for under the legislation.

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