Written answers

Thursday, 1 June 2017

Department of Public Expenditure and Reform

Public Sector Pay

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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15. To ask the Minister for Public Expenditure and Reform his plans to renew the FEMPI legislation at the end of June 2017 in view of the fact that the economy is no longer in a state of emergency; if so, the reason therefor; and if he will make a statement on the matter. [26270/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware I am obliged under the legislation to undertake  an Annual Review of the operation and effectiveness of the Financial Emergency Measures in the Public Interest Acts (FEMPI) which is laid before the Oireachtas by the end of June each year.

The most recent review, laid before the Oireachtas on 29 June last, found that there was a continued necessity for the measures provided for under the Acts. My decision at that time was informed by the instability in the international economy (including risks posed by Brexit), the still fragile nature of our economic recovery, the need to protect hard won competitiveness gains, the high level of debt, the continuing fiscal deficit, the obligation to comply with the Stability and Growth Pact, and the need to balance competing demands within the available fiscal space.  All of these factors remain challenging.

The Programme for Partnership Government committed the Government to establish a Public Service Pay Commission to examine pay levels across the public service. The Public Service Pay Commission produced its first report earlier this month. The independent evidence-based analysis is a key input to the negotiations currently underway on the extension of the Lansdowne Road Agreement and further unwinding of the financial emergency legislation. The outcome to these negotiations and the ongoing economic and budgetary environment will inform my necessary considerations for the next statutory report under the FEMPI legislation which will be laid before the Houses of the Oireachtas at the end of June. 

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