asked the Minister for the Public Service if he will give a comprehensive report on the payment arrangements agreed for the 25th Round and any conciliation awards and arbitration awards to be paid to public servants, giving the grades and numbers which are not budgeted for in 1986, but will be paid under the agreed terms in future years; and if he will give the amounts involved and the years where the money must be provided for.
Written Answers. - Twenty-Fifth Wage Round.
28.
As part of my reply to Question No. 20, I have answered the first part of this question about the payment arrangements for the 25th Round and for special increases.
Many of the claims for special increases under the 25th Round have yet to be fully processed — indeed, some claims may not yet have been lodged by the staff interests involved. For this reason it is not possible to provide a comprehensive list of "conciliation awards" or "arbitration awards" as requested by the Deputy.
As regards the financing of awards "which are not budgeted for in 1986", a provision was made in this year's budget for an additional £70 million in Vote 51, the Vote for increases in remuneration and pensions. This provision was to cover the cost in 1986 of the 25th Round Pay Package, costing £68 million and two pension concessions, costing £2 million. This figure of £68 million was my Department's best estimate at the time of the total cost in 1986 of the various elements in the package, and, while some of the component figures have been subject to some revision in the intervening period, the total of £68 million is still seen as sufficient to meet the full cost in 1986 of the increases in the package.
Since January's budget, there have been a number of cases — the most significant being the teachers' settlement — where the Government has agreed to make ex gratia payments as part of an agreement to defer the implementation of certain awards. No money was provided in the budget to meet the additional cost in 1986. The total cost of these payments in 1986 will be of the order of £17 million, of which the teachers' payments come to £15 million. It is not possible to say at this stage how much of this additional cost can be met from savings.
In relation to 1987 and later years, it is very difficult to quantify what additional costs will arise from the implementation of pay increases under the 25th Round package. As I said earlier, some of the claims may not have been lodged yet. At this stage all I can say is that the additional cost in 1987 to the Exchequer pay and pensions bill of increases under the 25th Round itself will be of the order of £115 million, while the additional cost in 1987 of special pay increases will be of the order of £40 million.
I should point out, however, that the overall position is complicated by a number of technical factors and that the figures given above cannot be taken in isolation in making any estimate of the 1987 Exchequer pay and pensions bill.