Vol. 438 No. 1
13 Mr. Yates asked the Minister for Finance if he has satisfied himself that the Book of Estimates as set out for 1994 adequately reflects the likely public sector pay provision and Government policy in relation to the current Programme for Economic and Social Progress talks regarding public sector pay.
The Abridged Estimates volume which was published on the 9 December 1993 reflects the 1994 pay costs of public services as on that date. The volume provides for
—the carryover cost of restoring the 3.75 per cent general increase under the Programme for Economic and Social Progress which was paid with effect from 1 December 1993 and
—the outstanding cost of restoring losses incurred by public servants due to the capping of the second and third general round increase under the Programme for Economic and Social Progress Pay Agreement.
Apart from the education and health elements of the arrears, the abridged volume did not take account of the adjustments required in respect of bringing forward Programme for Economic and Social Progress pay arrears from 1994 to 1993. This was due to administrative difficulties in getting all of the information in time for publication. The full adjustment will be shown in the Revised Estimates Volume for 1994. I am pleased that all Government commitments to pay increases to public servants which had to be deferred for budgetary reasons have now been honoured in full.
As I stated in my budget speech last week, the 1994 provision for Exchequer pay and pensions is now £4,278 million. This sum includes the effects on the pay bill of decisions affecting programme spending included in the budget. The necessary pay adjustments arising since publication of the abridged Estimates will be reflected in the Revised Estimates volume.
Negotiations on a new national programme to follow the Programme for Economic and Social Progress are still in progress. It has not been possible, therefore, to make exact provision for any pay increases which may be negotiated thereunder for public servants.
I would like to ask the Minister some very specific questions because as we speak negotiations are under way on the public sector pay deal. Last year the Minister said that the 3 per cent local pay bargaining clause would only be implemented in a payroll neutral situation, yet we hear this morning that baggage from the Programme for Economic and Social Progress is being brought forward. What is the up-to-date position in regard to the local pay bargaining clause? Is the Minister paying it, and what is the cost? Second, I tabled a question last week about special pay claims and the Minister said that there were 27 special pay claims listed to go before the arbitrator. What is the cost, over and above any annual increase, of the local pay bargaining clause and these special pay claims, if they are to be met?
The Deputy is correct in regard to the local bargaining pay issue. That was 3 per cent of pay on an Exchequer neutral basis, on the basis of productivity negotiations within the public sector. A number of these claims were processed to some stage during the course of the third year, 1993. Some of these are Labour Court awards. Others have been partially paid, for instance, the dental technicians and the ambulance drivers. A number of others have claims outstanding and, within the talks, these are being discussed. The Government is anxious that all these items should be paid.
None of the special claims has been processed so what the arbitrator would give is an unknown quantity. The Government cannot see how it can pay the private sector pay deal to the public sector, take over disputed amounts or unresolved issues from 1993 and, on top of that, pay additional amounts. There is some case for some of the issues outstanding because they may involve Labour Court findings, but to carry over all items which are at various stages of negotiation would be extremely difficult. It is for that reason that the discussions are very difficult. I do not want to say too much about them because they are at a fairly critical stage and have been since the private sector deal was completed. The difficulties of resolving this matter should not be underestimated.
The reports this morning are that the Minister is about to concede a four-year deal worth 12.5 per cent, leaving aside all the specials that now seem to be back at the starting gate. How can the Minister justify giving public sector workers a greater increase than private sector workers when over the period of the Programme for National Recovery and the Programme for Economic and Social Progress inflation has been 18 per cent and the public sector pay bill has gone up by 50 per cent?
As Deputy Yates is aware, the discussions are ongoing. He can take it that there will be great difficulty from the point of view of the Minister in paying increases that are out of line with the private sector deal. That is one of the reasons the discussions are in great difficulty.
