Written answers

Thursday, 17 May 2018

Department of Public Expenditure and Reform

Public Sector Pay

Photo of Tommy BroughanTommy Broughan (Dublin Bay North, Independent)
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23. To ask the Minister for Public Expenditure and Reform the estimated levels of pre-committed Government expenditure in 2018 and 2019 for demographic-related costs and pay equalisation in the public service; and if he will make a statement on the matter. [21621/18]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The Mid-Year Expenditure Report (MYER) 2017, published in July last year set out the pre-Budget position for voted expenditure after taking account of the impact of demographics across the areas of health, education and social protection, and the carryover impact of prior year measures.

The MYER set out an estimate for demographic costs of €0.3 billion for 2018 and €0.4 billion for 2019 after taking account of estimated Live Register savings. The amounts included in respect of demographic cost pressures are informed by the IGEES staff paper ‘Budgetary Impact of Changing Demographics 2017 – 2027’ published in September, 2016. This paper provides an estimate of the demographic cost pressures from 2017 to 2027 across the three main areas of current expenditure; Social Protection, Health and Education. Based on the analysis in the paper, in the short term, annual demographic cost pressures are expected to remain relatively static out to 2020, at an average of c. €0.4 billion per annum.

In relation to pay agreements, a total of €0.5 billion was allocated in 2018 to cover pay agreements for public servants in Expenditure Report 2018. This covered the final year of the Lansdowne Road Agreement and the first year of the Public Service Stability Agreement 2018-2020 that was endorsed by the Public Services Committee of the Irish Congress of Trade Unions in September last year. As outlined in Expenditure Report 2018, the Public Service Stability Agreement 2018-2020 will have a cost of €0.4 billion in 2019.

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