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Dáil Éireann debate -
Thursday, 12 Dec 1991

Vol. 414 No. 6

Written Answers. - Civil Service: Redundancy Scheme.

Godfrey Timmins

Question:

24 Mr. Timmins asked the Minister for Finance the total cost of the redundancy package for civil servants in each year from 1987 to date; and if he will outline (1) the ongoing additional superannuation costs arising from the scheme and (2) the arrangements, if any, which have been made to repay the Central Bank in respect of money advanced to the Exchequer to help finance the scheme.

Fergus O'Brien

Question:

53 Mr. O'Brien asked the Minister for Finance the total cost of the redundancy programme introduced by the Government in 1987; if he will, on a Department by Department basis, outline the net number of posts suppressed arising out of the programme; and if he will make a statement on the matter.

Michael D'Arcy

Question:

66 Mr. D'Arcy asked the Minister for Finance if he will outline (1) the additional amounts, other than the normal transfer of profit from the Central Bank to the Exchequer, which were advanced by the bank to help fund the public sector early retirement scheme in each year from 1987 to date and (2) the arrangements which have been put in place by the Government to repay these advances.

I propose to take Questions Nos. 24, 53 and 66 together. The statistical information sought by the Deputies is set out in two tables which I intend to circulate in the Official Report. Table 1 sets out the annual data on lump sums and pension costs as well as advances made from the Central Bank. Table 2 covers the number of posts suppressed in the Civil Service.

The public service scheme of voluntary early retirement has operated with a number of variations since 1987. The general scheme applied to staff serving in grades which were surplus to operational requirements and where early retirement was available without restriction of age. Posts vacated under this scheme were not filled.

In 1988 the early retirement provisions were made more widely available for a limited period. The scheme was open to staff aged 50 or over in grades which were not surplus to operational requirements. The primary intention of this measure was to provide vacancies which could be filled by the redeployment of staff from "surplus" groups in the Civil Service and the wider public service. In line with budgetary requirements it was decided that some of the posts so vacated should be suppressed. The number of posts suppressed as a result of the scheme is set out in Table 2.
The Central Bank advanced £84.9 million to the Exchequer to fund the public service early retirement scheme. These payments were in the nature of repayable advance payments of Central Bank surplus income. The Exchequer is therefore required to repay in full the advances made by the bank and this is being done by annual deductions from the normal Central Bank surplus income payable to the Exchequer. The repayment schedule is as follows:

£m

1989

2.1

1990

15.0

1991

21.2

1992

21.2

1993

19.1

1994

6.3

Total

84.9

Following are the tables:
Table 1

Year

Cost of redundancy package(1)

Cost for civil servants(2)

Ongoing superannuation costs(3)

Moneys advanced from Central Bank

£m

£m

£m

£m

1987

12.3

1.1

0.5

8.4

1988

99.8

33.6

12.5

51.5

1989

12.0

2.3

0.8

25.0

1990

2.6

0.5

0.2

1991(5)

0.5

0.2

0.7

Total

127.2

37.7

14.7

84.9(4)

Notes:
(1) Total amount paid each year in respect of lump sum payments to staff in the following areas: Civil Service, Local Authorities, Health, Education and Non-Commercial State Bodies.
(2) Includes industrial and non-industrial civil servants.
(3) Costs shown are the approximate current (1991) pension costs of the staff who retired in each of the years.
(4) Costs over and above the advances from the Central Bank were met from normal Exchequer sources.
(5) Provisional.
Table 2
Posts Suppressed as a Result of Voluntary Early Retirement

Department-Office

Number of posts suppressed

Agriculture

231

Central Statistics Office

7

Civil Service Commission

4

Comptroller and Auditor General

1

Defence

26

Education

35

Energy

74.5

Environment

41

Finance

28

Health

16

Houses of the Oireachtas

4

Industry and Commerce

19

Justice

36.5

Labour

105

Marine

13

Public Works

112

Revenue Commissioners

173

Social Welfare

17

State Laboratory

4

Taoiseach

8

Tourism, Transport and Communications

50

Valuation and Ordnance Survey

28

Total

1,033

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