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Dáil Éireann debate -
Thursday, 3 Nov 1983

Vol. 345 No. 7

Oireachtas (Allowances to Members) and Ministerial, Parliamentary and Judicial Offices (Amendment) Bill, 1983: Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

Before I reported progress I was dealing with the complex question of how best the situation might be resolved regarding the recompense of Members who are full time and have no other income as opposed to those who have outside interests. I should like to turn from that matter on this note. It is most appropriate to the business of an independent review body and I hope the review body will examine that question.

Deputy Kelly suggested that in the case of Members who have not got another income this Bill does not go as far as could be justified. The intention of the Government was to restore Members to the level they were at prior to the non-application of the normal Public Service Agreements to them. If any other question were to be involved it should be a question for the review body in the course of their periodic reviews.

Deputy Briscoe and Deputy O'Brien spoke about the fact that the Committee on Procedure and Privileges made representations to me and to them through the Whips about the difficult situation in which Members found themselves. This was compounded by the several elections which took place over the past two years together with the non-application of the general round in the Public Service. I appreciate the sentiments which were expressed. I think Deputy Briscoe said his party fully support the Bill and are unanimously in favour of it.

The Deputy referred to the 21-day provision. I should like to clarify that. It is now the intention that general increases of a public service or national understanding nature which apply to the Civil Service will be paid, because of the passing of this Bill, to Members of the Oireachtas and the Judiciary on the same day as they are paid to the Civil Service. The 21-day provision is being changed and, if the review body were to make a recommendation which would be regarded in trade union parlance as a grade or a special claim which might change the status or the relativity of Members, the Government would still be obliged to make an order to implement the recommendation of the independent review body. However, the order would be of a different nature from the orders which have existed over the past ten years or so. The order would have immediate effect, and would be capable of annulment within a period of 21 sitting days after it was made, but it would come into effect as from the date of its being made.

The Bill also introduces a provision which has not applied so far in that the previous and unsatisfactory order procedure provided only for increases to Members. It is as well that Deputies should be aware that the Bill provides that, if an adjudication of the type I have mentioned were made by the independent body and if it involved a decrease in the salary or conditions of Members, the new order procedure would also allow the Government to make an order if they saw fit, and if a recommendation were made which would decrease or in some way change for the worse the position of Members.

Could I ask the Minister for clarification? Will the increase be payable from day one in line with other people? Would it have to wait for the 21 days?

The pay phases which would be in line with the Public Service pay agreements and national agreements would be paid on the same day, on the agreed day, in the terms of the agreement in respect of which they would apply to the Civil Service. As Deputy Briscoe described it, they would be paid from day one. For example, if an independent review body recommended that some change should be made in the remuneration or conditions of Members, and if the Government subsequently considered the recommendation and decided to implement all or part of it, the Government would make an order which would take effect from the date of the order but would be capable of annulment by the House within 21 sitting days of the making of the order.

I found Deputy Mac Giolla's contribution interesting especially in the light of some of the statements I read in the newspapers yesterday. Perhaps approaching the matter from his ideological stand point, Deputy Mac Giolla went as near as his conscience would allow him to go by saying he felt this restoring of Members to the proposed levels was justified. He reserved most of his criticism for office holders and other aspects of parliament rather than individual Members. I appreciate the fact that he approached the matter in that way.

Deputy Mac Giolla agreed with a number of points I made in my opening remarks. He said it is important that this House should not be allowed to become a rich man's club, that that would be wrong and undemocratic, and that it was right to pay a reasonable salary to Members. He referred sympathetically to the high expenses of rural Deputies who have constituencies which are very large in geographical terms. The cost of serving their constituents including the cost of travelling within the constituency and the cost of advertising their clinics and their other political operations are not reimbursed directly by the Exchequer.

I am afraid the Deputy did not have a full appreciation of the importance of the independent review body and their role to adjudicate from time to time on the status or grading of Members. He suggested that, as Minister, I have not addressed myself to the total package of the conditions of Members. I do not think it is appropriate that the re-adjustment of the grading of Members should rest with me or any other Minister for the Public Service or the Government. Once the concept of periodic reviews conducted by an independent outside group — and this concept has been in existence for over ten years — has been established and accepted, the question of recommending on that packet of conditions should be for examination and recommendation by them, and then for conclusion by the Government. In that way the general public and fair-minded people would realise that an outside independent adjudicating group might have made one recommendation or another.

Deputy Mac Giolla will find that virtually all the provisions in the Bill, and the steps I intend to take in conjunction with the Bill, were referred to in the 1979 report on remuneration and higher salaries in the public sector of "Red Devlin", as it is known colloquially in the Department of the Public Service.

There is one section in the report which I would be happy to make available to the Deputy because it deals with almost all the matters contained in the Bill. The measures outlined in the Bill are, broadly speaking, in line with the recommendations made by that body in 1979. A fundamental part of their recommendations was not just in relation to Members of Parliaments but to all the groups on which they reported. In relation to the parliamentarians they stated at page 247: "It is our view that for the future some definite and consistent procedures should be adopted in relation to the pay of those covered by this reference". At page 282 they said:

It is our view that future reviews on remuneration for those covered by our terms of reference should take place at least every four years provided that the groups concerned receive all standard national agreements or other general round increases.

That is what I am trying to achieve and through changing procedures I am trying to secure a situation where the non-application of a general round increase to parliamentarians could only be achieved by a change in legislation. I hope this will be seen by fair-minded people as nothing more than the binding of the Parliament to a commitment of Devlin that if, every so often they set the appropriate level, that level will be maintained so that a subsequent review will not have the problems they had the last time they met of conducting exhaustive research to try to examine and restore the position of Deputies in comparable terms to the levels they recommended six or seven years previously because of the occasional non-application of certain rounds.

I was taken by Deputy Mac Giolla's suggestion that the general public blamed us for virtually all the ills of our society. While Parliament and Government have had a contributory role in some of the ills and difficulties in our society, society itself has its own obligations. The suggestion that we ought to be deposed because we are doing a bad job is interesting. If it were to be applied to other groups, with equal logic it could be suggested that ministers of one religion or Church should be held responsible because all their flock do not attend Sunday service. It would be more appropriate if the religious were to examine how they administer their duties in order to encourage greater attendance at worship by their flock. Members of Parliament might approach the business of Parliament that way rather than the standard ritual of wringing their hands and writing off the whole place as a bad job.

Quite right.

Deputy Mac Giolla said that, while he accepted it was right that there should be a reasonable payment for Deputies doing their jobs, he felt that because of the present economic situation and the vast numbers of unemployed we ought to deprive ourselves for a while longer of what might be regarded in other circumstances as a reasonable restoration of status. The question I have to ask is: for how long should Members not have general round increases applied to them? They have not had any increases since June 1981 and, as we know, costs have risen considerably during that time.

The effect of this Bill will be that from a current date, September, Deputies' allowances will increase by 18.9 per cent, but they will not receive any element of retrospection for the previous two-year period. It is interesting to reflect that from June 1981 to December 1982 the average industrial earnings in manufacturing industry had risen at 19.35 per cent. That means that a year ago the average industrial earnings indicator for manufacturing industry had increased by ½ per cent more than Deputies' increases given a year later, and the former had the benefit of that increase on the due dates and during the period. For instance, the comparable figure for the average industrial earnings in the transportable goods sector is 20.07 per cent as from 1 December 1982.

One final point raised by Deputy Mac Giolla I must take issue with: that the intention of this legislation is at variance with the provisions of the current public service pay agreement. Nothing could be further from the truth. The current public service pay agreement provides for a two-phase increase, from September last and February next. It provides for that increase to be paid to a large group in the public service in respect of all of whom the provisions of the previous public service pay agreements were applied on the due date — 2 per cent in December 1981, 6 per cent in March 1982 and 5 per cent payable in October 1982, but was not paid until January 1983 and was paid retrospectively to October 1982. All those involved in the current agreement got those percentages during the lifetime of the last agreement — they were the standard applications of the standard phases. Any other claim of a special nature in relation to comparability or relativity is regarded as a special claim outside the normal scope of the payment of the normal phases and is dealt with in a particular way; and in the current pay agreement we have devised a method of payment of any special award like that on a phased basis.

The only other person I found who had managed to contort what Parliament is now attempting to do by suggesting that the attempt to pay the normal pay agreement phases to Members, belatedly and- without retrospection, is a special award or grade claim under the terms of the current public service pay agreement is Mr. Des Geraghty.

Of what party is he a member? Tell us.

The Workers' Party. Party.

(Interruptions.)

Mr. Geraghty said, and I quote from today's issue of The Irish Times:

Mr. Des Geraghty said that the Minister, Mr. Boland, was being blatantly dishonest in attempting to pass off the increases as the belated application of the terms of recent public service pay agreements. "It is totally unacceptable that he should attempt to use the terms of recent public service pay awards to justify his proposals".

Later, when dealing with the rate of payment for travel and overnight allowances, he said they were "completely at variance to the proposed adjustments in mileage, subsistence and attendance allowances for TDs." Whatever excuse I can make for Deputy Mac Giolla who presumably would only have read of the provisions of the pay agreement in the newspapers, or got a copy of the terms from my Department or some other source, I find it incomprehensible that a paid, full-time trade union official could so misrepresent or have such a misunderstanding of the clear provisions of the present Public Service pay agreement in which his union representatives played a major part in the negotiations. I find it hard to understand that he could so distort the picture and attempt to portray a false image of the situation.

I am not clear from the statement whether Mr. Geraghty is speaking as a senior trade union official or is wearing his political cap as a member of Mr. Mac Giolla's Sinn Féin.

He is trying to wear both caps and that is not possible.

In small mitigation of Mr. Geraghty's position I have to say that perhaps there is a marginal possibility that he has such a basic misconception of the provisions of the pay agreement because those negotiations took place over a period of virtually two months and Mr. Geraghty attended for the last meeting and, perhaps, made a guest appearance at the second last meeting. It may be that because of his non-attendance, and the fact that he was represented by others, he now so misunderstands the provisions of the pay agreement. Otherwise I can only say in all honesty that there has been a deliberate attempt made to confuse the issue, to muddy the waters and suggest something that is totally fallacious and which I know could only be rejected by the other trade union negotiators who participated in a genuine way and understand the provisions of the pay agreement. Irrespective of which hat he is wearing the statement ill behoves somebody whose salary, expenses and other allowances are far in excess of the level to which Deputies will move to belatedly if the provision is passed.

I should like to thank the Members who contributed, Deputies Doyle, Brady, Pat Cope Gallagher and Dowling and Minister of State Barrett. Perhaps the best summing up in regard to this matter was made by Deputy Bell. He made his contribution at a time, unfortunately, when there was not as high an attendance in the various galleries of the House as there would normally be. He pointed out clearly that he was speaking as a trade unionist, a former trade union official and a member of the Committee on Procedure and Privileges. He suggested that no trade union official or trade unionist would tolerate the situation which has pertained here in recent years in regard to Members of the Oireachtas. I am quoting what the Deputy said because the various galleries are fuller now than they were. The Deputy also said that the majority of trade union officials to his knowledge and from his experience were, through the combination of their various allowances and salaries, in a substantially better position as far as personal finances were concerned than were Members of this Parliament. He had some fairly direct remarks to express to those he described as his fellow trade unionists in the press and I am sure they will accurately record and report those views.

Deputy Bell pointed out quite trenchantly to the House that in his experience as a trade union official the intent in the Bill to pay belatedly normal pay rounds without retrospection was unprecedented and represented a sacrifice on the part of the people affected which would not be acceptable in trade union circles on behalf of their members. In fairness, that situation which is factually correct — that Members will permanently be at a loss of £2,300 in comparison to others who were at the same salary level in June 1981 — has not been as widely or accurately reported to the general public as it should have been. Deputy Bell went further and stated that at one stage he had invited members of the Committee on Procedure and Privileges on an all-party basis to ask Members to form a local branch of one union or another, to join that union and ask that union to negotiate directly on their behalf. I am sorry the Deputy is not here because I would love to hear from him which union he is suggesting they ought to join. I have my own views in relation to my limited experience and, perhaps, the recommendations I might make as to the union might not be recommendations I would make in as laudatory a fashion in regard to my other dealings with certain unions.

Deputy Bell summed up the position accurately. He has indicated over recent months that unless the Government mended their hand in regard to this matter he would consider taking it to the Labour Court and asking it to adjudicate on the situation. I suspect the court would say that this did not come within its terms of reference but equally I suspect that had the court seen fit to adjudicate that those who complained about the extent of the provisions of the Bill would be complaining in even more strident terms.

Deputies Dowling and Bell referred to the editorial in today's issue of the Irish Independent and I should like to join with them in saying that was genuinely a fair attempt on the part of that newspaper accurately to present the situation. I do not think the way the matter has been presented by our friends in the media so far in other respects has been as fair or balanced. For a few moments I should like to deal with what it says in the papers. The political correspondents factually reported yesterday's briefing on what was contained in the Bill. It was as accurate as one could hope to see. I do not think any Member has any quibble with that presentation. The editorials in some of the newspapers, and some of the articles in the evening newspapers, were difficult to follow. In the issue of The Irish Press I purchased yesterday, which was apparently the country edition, the headline was, “Dail's 19 per cent on Pay and Perks” but in the later edition the headline was “Coalition opts for 19 Per Cent Rise”. Presumably, in the light of the unstinted remarks of the Opposition Chief Whip, and other speakers on the Fianna Fáil side, The Irish Press subeditors will avail of the opportunity tomorrow to rectify the situation and explain that the measure has the support of Fianna Fáil under similar headlines. I do not know why it was necessary to change the headline from one edition to the other.

The editorials in The Irish Press did not fairly present the situation. That newspaper did not seem to be in line with the manner in which the news reporting of the effect of the decisions was presented. I find it difficult to understand the editorial in today's issue of The Irish Times. That editorial concludes:

But an opportunity to perform a bold and memorable act, in publicly renouncing an increase, has been missed; an opportunity for imaginative and inspiring leadership.

That does not take any notice of the fact that Members had not had the normal increases paid to them and that they are being permanently obliged with the passage of this legislation to forego an amount in excess of £2,000.

I would remind the House that in 1981 the Government of which I was a member decided to implement belatedly the last phase of the national pay agreement in so far as non-office holder Deputies and Senators were concerned and also members of the Judiciary. At that time members of the Government decided voluntarily to forego the effect of that increase in the hope, as The Irish Times suggested today, of encouraging wage restraint. For the benefit of Members of the House, the extent of reportage in The Irish Times of that decision was two inches of comment. The opportunity was missed by responsible people in the media to follow that decision and to invite others to do likewise. The coverage in The Irish Press was perhaps one quarter of an inch longer. We had to search three archives to get a copy of the Irish Independent of that day. That was the only paper that gave the matter any decent coverage. It is very difficult to reconcile the view fairly expressed by an editorial writer that the opportunity should be taken to set an example to have wage restraint when we remember what happened in the past, when there was so little response to it, so little coverage of it and virtually no comment in the editorials.

In my opening remarks I said I was quite certain that Members of this House would be the first to agree if there was to be a general standstill on wages and incomes to bring about a correction in the imbalance in the nation's finances. However, I do not think it fair to ask Members of Parliament not to take the normal increases recommended by a review body and which have been applied to the rest of the Public Service.

In The Irish Press of today's date there is a news report that is incorrect. That paper seems to confuse the fact that a Deputy from a rural area who has to stay overnight in Dublin when the Dáil is in session is paid an overnight allowance. Instead they take the amount of payment, multiply it by the number of sittings and suggest this is a tax-free element that ends up in the hands of the Deputy. The paper then goes on, as did the Evening Press yesterday, to work out in annual terms the amount of travelling expenses a Deputy would get to travel to Dublin and back, adds that to the tax-free element of the Deputy's salary and suggests he gets £13,000 or £14,000 tax free. Theoretically perhaps that is correct on the basis that all Members manage to hitch a lift to Dublin and stay overnight in the Phoenix Park. As was pointed out by Deputy Bell, the level of travelling expenses and overnight allowances we propose to pay to Members will bring them somewhat in line with, but not quite as much as, what I understand to be the rates generally payable to members of the press and media when they have to stay overnight away from home.

In the same way The Irish Press reported yesterday that Deputies who live within ten miles of Dublin will get a daily attendance allowance. That allowance is in lieu of mileage or subsistence expenses. They worked that out on an annual basis, took the example of a Deputy living eight miles from Dublin who would not be entitled to a mileage expense, worked out an annual sum based on mileage rates, added that to the daily allowance and added those figures to half of the Deputy's allowance. That is incorrect. Neither of the reports in the two papers did any service to a fair, balanced presentation of what is being proposed. If people in the media want to criticise what is being done that is their prerogative and responsibility but, equally, they have a duty and responsibility at least to present in a factual, correct way what is being done and to advance criticisms on that basis.

What we are doing is to pay to Members general provisions that apply to the Civil Service and which were paid to them in the past two years and to pay this without retrospection, in the future to apply the ordinary rate of travel expenses that apply to civil servants and to establish that as the rate to be paid in the future. What we are doing is to give to Members who have to stay overnight an allowance rate of £27.50 which is standard or somewhat less than most of the rates paid by commercial firms and to link that allowance so that it will move automatically. We are increasing the daily allowance from £10 to £16 with a provision to link it in the same way. Those allowances have not increased for three years. We want to ensure that in future the acrimony and misunderstanding of the past few days will not occur again. We do not want the same kind of misunderstanding that has arisen now.

I hope fair-minded people will regard this as a reasonable and realistic approach to the problem. On a personal basis I do not object to the criticisms made. In asking the House to enact the legislation I am providing that in the future Members will have their salary levels and allowance levels, as determined by the independent review body, retained and that they will move equitably and fairly in line with movements in the Public Service. I do not want Governments or Ministers for the Public Service in the future to be placed in the situation in which we found ourselves. I hope by doing that I will have provided a service for democracy and for Parliament.

Is Second Stage agreed?

Question put and agreed to.

When is it proposed to take Committee Stage?

I am putting the question, "That Committee Stage be taken now". Is that agreed?

No, it is not agreed.

The question is "That the Committee Stage be taken now". On this question a division has been challenged. Will those Deputies claiming a division please rise?

Deputy Mac Giolla rose.

There appears to be a split in The Workers Party: Deputy De Rossa is not here.

He is in Coleraine.

Coleraine, Russia?

Deputy Mac Giolla wants to be put out.

As fewer than ten Deputies have risen, in accordance with Standing Orders I declare the motion carried. Deputy Mac Giolla's name will be recorded in the proceedings as dissenting. The Committee Stage will be taken now.

I protest——

Deputy Mac Giolla already has protested in the strongest possible manner.

I was not allowed to speak. This morning you put me off, and I was not allowed on the Second Stage. I put it to you this morning whether the Committee Stage would be taken today and you would not allow the question.

Will the Deputy resume his seat for a moment? When the Second Stage was completed the proposal was that the Committee Stage be then taken. The Deputy then had an opportunity to speak on that motion. He did not do it.

We have not been given an opportunity to put down any amendments.

The Deputy should have made that point when the motion was before the House that the Committee Stage be taken.

I made the point on the Order of Business and you told me I was not in order. Then I raised it on the Second Stage and again you told me I was not in order — you put me off again.

The Deputy did not raise it when he could have, that is, when the question was put that the Committee Stage be taken today. He could have spoken for an hour then if he had wanted. The matter would have been perfectly in order and relevant at that stage.

I must protest. I raised it on the Order of Business but the Chair ruled me out of order——

The Deputy made the strongest possible protest. He challenged a division but he was not able to substantiate it. The Deputy would have been better engaged reading Standing Orders.

We have not been given an opportunity to put down amendments. What is the point in taking Committee Stage today?

The Deputy knows he will get every consideration from the Chair at all times. He did not make his speech when he could have made it, on the motion that the Committee Stage be taken. He did not avail of that opportunity.

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