Bernard Durkan (Kildare North, Fine Gael)
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119. To ask the Minister for Public Expenditure and Reform the extent to which he expects to be able to maintain compliance with the Lansdowne Road agreement or other pay agreements in the context of the financial emergency measures in the public interest, FEMPI, legislation, having particular regard to the need to reward those affected by the downturn in the economy in the course of the ongoing recovery; and if he will make a statement on the matter. [3700/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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This Government believes in the value of collective agreements and is taking steps to support the continued implementation of the Lansdowne Road Agreement .

A collective approach to public service pay is vital to our national interest as it provides for the stable industrial relations environment which has been a pillar of our domestic recovery and restored international reputation. Collective agreements deliver public service reform, secure productivity improvements and allow for strong fiscal planningwhere pay increases are negotiated fairly and budgeted for on a multi-annual basis. This allows us to balance pay increases in the public service with other societal priorities including improvements in housing and health care.

The Labour Court Recommendation on Garda pay issued on 3^rdof November last had serious implications for the continued viability of the Lansdowne Road Agreement and this needed to be addressed.

This process of engagement between public service management and the Public Service Committee of ICTU has been completed.

In acknowledgement of the anomaly that has arisen, the Government in its capacity as the public service employer, agreed to an increase in annualised salaries of €1,000 for the period April to August 2017 inclusive for:

- those on annualised salaries up to €65,000;

- who are parties to the Lansdowne Road Agreement; and

- who do not stand to benefit from the Labour Court recommendations (CD/16/321 & CD/16/322) issued in respect of the Garda Associations.

This additional payment is being offered by Government on the understanding that there will be continued adherence to the terms of the LRA, and in particular, its mechanisms to resolve disagreements before they escalate into industrial disputes over the remaining period of the Agreement. The requirement therefore to adhere to industrial peace will be fully observed in all sectors and this has been accepted by ICTU.

The Oversight Group for the Agreement will meet regularly in order to take an active role in addressing any major disputes that arise ensuring compliance with the relevant terms of the agreement over its remaining term.  

Preparatory work for Phase 2 has commenced, with parties making submissions to the Public Service Pay Commission. An initial report from the Commission is expected in Q2 2017. This report will provide inputs on how the unwinding of FEMPI legislation can be best managed in the context of the national finances.

Once this report is available, the Government intends to initiate negotiations on a successor to the Lansdowne Road Agreement ahead of Budget 2018 considerations.