asked the Minister for the Public Service if he will synchronise increases of pension to public officials with the payment of increases to serving personnel.
Ceisteanna—Questions. Oral Answers. - Public Service Pensions.
38.
As I announced in the budget statement of 3rd April, 1974, public service pensions will, in future, be revised each year on 1st July by reference to rates of pay in operation on that date. Accordingly, on 1st July next, and on the same date in future years, public service pensioners will have pension parity. I think that, having regard to all relevant considerations, these arrangements are reasonable.
Would the Minister not think this annual review is a complete change of policy as compared with five years ago when the then Minister was accused by the Minister's party of not having pensions brought up when there were increases given to serving personnel in the Civil Service? Excuse my rather long question but, arising out of the Minister's reply, these people had no way of striking to get what the serving personnel got; the only thing they could do was go on hunger strike.
I am afraid the Deputy is engaging in an argument.
What we have done is to provide complete parity from 1st July every year. There was a time when several years went by before retired public servants got increases in their pensions. Now they will have automatic parity from 1st July every year. Some idea of the significance of this can be gathered from the fact that narrowing the gap as we did this year by a further three months is costing £1.6 million. Since 1970 the gap has been narrowed at an Exchequer cost of £15 million, so there has been quite a considerable improvement. I might say that the right to automatic parity from 1st July every year which is now extended to public servants is not available, by and large, in the private sector.
That is not what the Minister said, and I was inclined to agree with him.