asked the Minister for the Public Service the estimated saving to the Exchequer of a hypothetical 10 per cent pay cut in the pay scales of all public servants earning in excess of, for example, £2,500 per annum; and if he will state separate details for the Garda and Army.
Written Answers. - Public Service Pay.
72.
It is estimated that the hypothetical saving for the Exchequer that would result from the pay cut referred to in the question would be in the region of £32.5 million to £35.5 million so far as the public service pay bill is concerned or £38 million to £42.0 million if certain other pay elements falling on the Exchequer were taken into account.
The details are as follows:
|
Hypothetical Saving in a year |
|
|
£m. |
|
|
(1) Civil Service (including industrial employees) |
9.0 to 10.0 |
|
(2) Garda Síochána |
2.6 |
|
(3) Teachers, Vocational Education Committee staff, and so on |
12.0 to 13.0 |
|
(4) Defence forces |
1.9 |
|
(5) Health boards |
7.0 to 8.0 |
|
Total (public service pay) |
32.5 to 35.5 |
|
(6) Other (i.e. pay elements in university, voluntary hospital and certain state-sponsored body grants, parliamentarians, etc.) |
5.5 to 6.5 |
|
Grand Total |
38.0 to 42.0 |
The estimates should be taken as indicating the approximate order of magnitude of the hypothetical savings involved. Because of the complication introduced by a threshold the calculation of a more precise figure would involve a considerable degree of work on the part of Departments and other public sector bodies.
The figures do not allow for the effects of a cut on overtime payments and allowances in the nature of pay nor for the effects on pensions and pension increases. Neither do they allow for the effects on income tax receipts under PAYE. If a similar cut were applied to other public servants whose pay does not fall on the Exchequer—for example, local authority employees, employees of various State-sponsored bodies—the Exchequer might also be expected to benefit indirectly to some extent.