Dáil Éireann debate -
Wednesday, 21 Feb 1962

Vol. 193 No. 3

Committee on Finance. - Vote 56—Civil Service Remuneration.

Minister for Finance (Dr. Ryan)

I move:

That a supplementary sum not exceeding £600,000 be granted to meet such of the charges as have not been otherwise provided for, which will come in course of payment during the year ending on 31st day of March, 1962, for Increases in Remuneration of Civil Servants.

Deputies will be aware of the recent upward movement of wage rates generally which has become known as the "eighth round". This movement has caused repercussions in the public service where, as I mentioned in my last Budget Statement, rates of pay are for the most part fixed by conciliation and arbitration machinery and a significant influence is exercised by the level of pay in outside employment.

Claims have been made on behalf of nearly all grades coming within the scheme of conciliation and arbitration for the Civil Service. The pay of the bulk of these grades has already been adjusted by reference to the "eighth round". It is estimated that increases for grades covered by the scheme, together with consequential adjustments for higher staff, will cost over £2 million for a whole year and about £1 million in the current financial year. No provision was made in this year's Estimates for these increases.

On some Votes, the additional expenditure can be met out of savings; on others, the amounts required for pay increases have been included in Supplementary Estimates which would, in any event, have been necessary. The present Estimate for £600,000 covers 12 Votes which otherwise would have required Supplementary Estimates solely to meet pay increases.

Mr. Donegan

We on this side of the House view with grave trepidation the fact that this Estimate is necessary. We understand the machinery that exists for bringing up Civil Service remuneration when there is increased remuneration in other occupations in the country but, in making observations on this Estimate, it would be wise to remember that the people about whom we have just been talking, the farmers, have had no increase in the price of their agricultural produce since 1953 while in my opinion, the increase in their costs of production could be measured as being between 40 per cent. and 60 per cent. since that date.

The Minister gave figures in a recent statement, which I cannot extract, which indicated that the gross agricultural income has increased by some relatively small sum. Of course, when the Minister says it, I accept that it is true, but it points to the fact that these people have much less to live on than they had in 1953 and that the self-employed people, who are catering for a smaller population, and have a smaller range of customers, have smaller incomes than in 1953. I do not deliberately take the year 1953 except for the reason that the agricultural price index is fixed at 100 based on that year. The Minister will understand that there is no political implication in taking that year.

At this stage we should remember that there may be inflation at the end of the year and that we are approaching a Budget about which the Minister has expressed trepidation as to what he may have to do.

It is a sad thing that the increase in remuneration throughout the economy has been restricted to those people who through their trade unions could get increases irrespective of the results in the prices of products and to people such as civil servants who have their arbitration machinery.

In passing this Estimate, it is wise to draw attention to the people I have mentioned and, indeed, to pensioners and persons on fixed incomes who have not got increases corresponding to the increase that this £600,000 means to civil servants and to realise that we are not bringing up the people as a whole to the standard which is enjoyed by certain small sections of our community, which we do not grudge them.

Dr. Ryan

The Deputy said that I made some statement. The most recent statement I made on that point was that it was not true to say that the farmers' income had not increased; it had increased.

Mr. Donegan

The gross agricultural income.

Dr. Ryan

I said that even his net income had been increased. "But," I said—and I think the Deputy will be satisfied with this statement—"it has not increased pari passu with the increase achieved by industrial workers.”

Mr. Donegan

That is the greatest understatement of the year.

Dr. Ryan

It is a fact.

Mr. Donegan

It is a fact, but it is the greatest understatement of the year.

Dr. Ryan

We can analyse it on that point. That was the statement I made.

Mr. Donegan

Yes.

Dr. Ryan

As a matter of fact, I was making the case for the farmers. I went on to make the case for the farmers and said they did not get the increase that others had got and I spoke of the difficulty in dealing with them because their prices are largely determined by prices on the export market. That is why it is terribly difficult to do anything in that respect. To a certain extent, we can subsidise them.

I do not think it would be in order to deal with the whole agricultural position now. I can only ask for this Estimate for increases. There will be about £1,000,000 due this year for the Civil Service. That would be about a half year on the increase — £600,000 here and another £400,000 to come from Departments where they had savings to pay it. In a few cases, where Estimates are coming from the Dáil, for some other reason, a sum is put in for increased remuneration. The Civil Service increase will be about £2,000,000 for the year—£1,000,000 which covers half a year in this financial year.

Vote put and agreed to.