Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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81. To ask the Minister for Public Expenditure and Reform the plans his Department has to address the crisis in recruitment across multiple areas of the public sector; if these plans include changes to pay scales or other allowances; and if he will make a statement on the matter. [56463/22]

Michael McGrath (Cork South Central, Fianna Fail)
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The level of employment in Ireland reached over 2.55 million people in the second quarter of this year, the highest level ever. Increased labour force participation has been a key factor behind the strong employment recovery. Despite some expected softening in the labour market over the next year or so, tight conditions and skills shortages for some sectors are likely to persist in the labour market. This creates challenges for all employers, including the civil service and wider public service.

However, it is important to point out that, notwithstanding these challenges, the public service has continued to grow its staff numbers significantly. Between 2015 and 2021, for example, overall serving numbers in full-time equivalent terms increased from about 302,000 to 366,000, an increase of 64,000 or over one-fifth. Over 2022 alone, the numbers employed are estimated to increase by almost 15,000, or 4%.

While the current inflationary impacts on all workers is acknowledged, the public service is a good employer offering competitive terms and conditions to attract and retain staff, including flexible working arrangements, decent pension provision, fair wages that increase over time and secure employment.

In the case of recruitment to the civil service, for which I have policy responsibility, the Civil Service 2024 Renewal Action Plan sets out actions to ensure that the civil service is as an employer of choice with a range of initiatives under the Workforce, Workplace and Organisation of the Future themes to help further attract, develop and retain a diverse civil service that delivers for our citizens. To achieve these objectives my Department works closely with the Public Appointments Service and other Government Departments to streamline recruitment processes and create new employment pathways into the civil service through a variety of initiatives, from apprenticeships to paid internships.

With regards to pay, as you know, pay in the public service 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 way while enabling reform of public services and changes to work practices.

The current public service agreement is ‘Building Momentum – A New Public Service Agreement 2021 – 2022’ which was due to expire at the end of 2022. As the Deputy will be aware, discussions concluded earlier this year between the parties to the Agreement following the triggering of the review clause in Building Momentum by public service unions and associations due to increases in the cost of living.

These were 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 Government’s aim in these talks was to achieve a deal that is fair and affordable to both taxpayers generally and public service employees.

The outcome of these discussions was a set of proposals put forward by the Workplace Relations Commission to extend Building Momentum for a period of 12 months to the end of 2023. Three additional pay adjustments totalling 6.5% are provided for under the extension to Building Momentum over 2022 and 2023. These are:

- An increase in annualised basic salaries for public servants of 3% backdated to 2 February 2022.

- An increase in annualised basic salaries for public servants of 2% on 1 March 2023.

- An increase in annualised basic salaries for public servants of 1.5% or €750, whichever is greater, on 1 October 2023.

The WRC proposals have been accepted by public service unions and representative associations.

The cost of these pay adjustments under the extension to Building Momentum is estimated to be €1.6 billion spread over three calendar years - 2022, 2023, and 2024.

This extension makes Building Momentum a three year pay deal. The extension acknowledges the higher than anticipated rates of inflation that have emerged since 2021 and in particular the impact of cost of living pressures.

The existing Building Momentum Agreement provided headline benefits of 3%. In total, including the existing Agreement and the proposed extension, headline benefits over the lifetime of Building Momentum amount to 9.5%, or just over 3% per year.

In respect of public servants at lower pay levels, Building Momentum as extended provides for increases of 12.5% over its lifetime, which is an average of just over 4% per annum.