Catherine Murphy (Kildare North, Social Democrats)
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117. To ask the Minister for Education and Skills if an analysis of the pay differential between new entrants to the teaching profession and those employed before 1 February 2012 has been completed; if that analysis includes a figure for the estimated cost of creating pay parity; and if he will make a statement on the matter. [32566/16]

Richard Bruton (Dublin Bay North, Fine Gael)
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As a consequence of the financial crisis, there was a need to enact a number of measures to reduce public expenditure so as to stabilise the country's public finances. A previous Fianna Fáil led Government reduced the salaries and allowances payable to all new entrants to public service recruitment grades by 10% with effect from 1 January 2011. This decision also required that such new entrants would start on the first point of the applicable salary scale, which in the case of teachers had the effect of reducing their starting pay by a further 4-5%. Later in 2011, the Fine Gael/Labour Government placed a cap on the overall level of qualification allowances that could be earned by teachers.

Subsequently in 2012, following the public service-wide review of allowances, the Government withdrew qualification allowances for new teachers altogether. However, the Government partially compensated for this by deciding that new entrant teachers would henceforth commence on a new salary scale which had a starting point higher than the starting point of the old scale.

The recent agreement with TUI and INTO in the context of the Lansdowne Road Agreement substantially addresses the current difference in pay between those recruited since 2011 and those recruited since 2012 and will mean a significant pay increase for new entrant teachers. It is estimated that over a teacher’s career the value of these increases will be €135,000.  This, in combination with measures already agreed and implemented under the Haddington Road Agreement, will restore approximately three quarters of the reductions for new entrants put in place since 2011 in terms of career earnings.

The full year cost of this agreement is €20 million.

When other Lansdowne Road increases are also factored in, there will be a 15% increase in the starting pay of new entrant teachers between 31 August 2016 and 1 January 2018 (from €31,009 to €35,602).  For an individual TUI/INTO member who started teaching in September 2015, they will see a 22% increase in their pay (including increment) between 31 August 2016 and 1 January 2018 (from €31,009 to €37,723).   

In addition to this, it must be borne in mind that the pay reduction for post-2011 entrants to the public service applied to all public servants and not just teachers, and that any restoration of these measures in respect of teachers would be expected to be applied elsewhere across the public service. While I am not in a position to provide an estimate of the total cost of restoring all post-1 January 2011 entrants in all areas of the public service to the pre-2011 pay scale arrangements, I can say that in the case of education and training sector employees, including teachers, the estimated cost would be between €65 and €70 million per annum.  Clearly, the cost across the entire public service would be substantially higher.

The agreement on new entrant pay shows what is possible through dialogue and negotiation within the Lansdowne Road Agreement. The Government is wholly committed to the implementation of the Lansdowne Road Agreement as the most appropriate way for progress to be made on pay restoration and reform of our public services into the future.

In addition, the Government has committed to establishing a Public Service Pay Commission to examine pay levels across the public service, including entry levels of pay. The Government also supports the gradual, negotiated repeal of the Financial Emergency Measures in the Public Interest Acts, having due regard to the priority to improve public services and in recognition of the essential role played by public servants.