Written answers

Thursday, 16 June 2022

Department of Public Expenditure and Reform

Cost of Living Issues

Photo of Kathleen FunchionKathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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215. To ask the Minister for Public Expenditure and Reform if the Government will increase civil service pay rates considering the cost-of-living crisis and the impact that it is having on persons and their ability to travel to their employment; and if he will make a statement on the matter. [31426/22]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Civil and public service pay has been governed by a system of collective agreements since the Croke Park Agreement was negotiated in 2010. These collective agreements have helped to ensure that public pay is managed in a sustainable, affordable and orderly manner. These agreements have also enabled significant reform of public services and changes to work practices.

The current public service agreement is Building Momentum - A New Public Service Agreement 2021-2022. This Agreement is weighted towards those at lower incomes with headline increases of approximately 5% for the lowest paid public servants. These groups will also benefit more from other measures in the Agreement including the overtime rates and premia payment adjustments.

Building Momentum is a two year Agreement, which is due to expire at the end of 2022.

As the Deputies will be aware, exploratory discussions have taken place between the parties to the Agreement following the triggering of the review clause in Building Momentum by public service unions and associations due to the increasing cost in living. These discussions have now moved to formal phase of discussions which are being facilitated by the Workplace Relations Commissions.

As the Deputies will appreciate, while these discussions are ongoing it would not be appropriate for me to comment on the detail of those talks which should remain confidential to the parties. However, inflation and cost of living issues to which the Deputies have referred will feature in those discussions.

These are challenging discussions given the impact high levels of inflation are having on living standards of workers but also because of the uncertainty in the global economic outlook. The aim in these talks will be to strike the right balance and seek to achieve a deal that is fair and affordable to both taxpayers generally and public service employees.

Nevertheless, an agreement on public service pay could play an important role in underpinning stability, minimising industrial unrest and supporting the continued delivery of reform and quality public services over the period ahead. However, any such agreement would need to reflect the broader economic context and the current fiscal position where significant challenges are emerging.

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