Bernard Durkan (Kildare North, Fine Gael)
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99. To ask the Minister for Public Expenditure and Reform the extent to which he remains satisfied regarding the ability to meet the potentially conflicting challenges of restoration of income through FEMPI and the need to maintain the competitiveness of the economy in the future; and if he will make a statement on the matter. [31756/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is no doubt aware, my Annual Review of the operation, effectiveness and continued necessity of the Financial Emergency Measures in the Public Interest legislation was laid before the Oireachtas on 29 June.

A copy of the report can be found at the following link:

In the Review I found that the immediate repeal of the FEMPI legislation is unaffordable. However, the proposed Public Service Stability Agreement 2018-2020 represents a negotiated solution for dismantling the emergency legislation over the coming years, one that is compatible with the economic conditions of the State, national competitiveness and available revenues.

The proposed Agreement provides a series of affordable pay increases which will unwind FEMPI pay reductions for all public servants earning up to €70,000, which is equal to almost 90% of public servants over the period to 2020. As such, this provides a clear and realistic route out of FEMPI. In total the benefits under the Agreement range from 6.2% to 7.4%, weighted in favour of those on lower pay.

As well as being fair to public servants it is also fair to those who rely on public services and to the exchequer. Under the proposed terms of the Agreement, public servants will make an additional contribution to their pensions, which is reasonable and reflects the higher value of these pension terms compared to the private sector. Crucially, this will place public service pensions on a more sustainable long-term footing.