Dáil Éireann debate -
Thursday, 3 Mar 1994

Vol. 439 No. 7

Written Answers. - Public Service Pay Efficiency.

Pat Cox

Question:

55 Mr. Cox asked the Minister for Finance the cost of the 1 per cent payment to be made to public servants on 1 April 1994; and the measurable or noticeable improvements in efficiency and effectiveness that will be achieved by that date designed to generate savings of an equivalent value.

Minister for Finance (Mr. B. Ahern)

I would refer the Deputy to clause 2 of the proposals for a new pay agreement which forms part of the Programme for Competitiveness and Work.

Annex 1 to the draft pay agreement deals with the application to the public service of that clause. Clause 2 (iii) of Annex 1 sets out the proposed arrangements and procedures for dealing with outstanding claims in the public service under clause 3 — local bargaining — of the Programme for Economic and Social Progress pay agreement which has not yet been processed to a conclusion.

Clause 2 (iv) of Annex 1 emphasises the full commitment of the Government and the trade unions concerned to approaching those negotiations on the basis that real changes involving savings and improvements in efficiency and effectiveness will be achieved. In that context, the proposals provide for payment of 1 per cent on 1 April 1994 which will be fully offset against the outcome of the negotiations.

What is intended is that for each group of employees outstanding claims will be discussed and arrangements for processing them, on the basis of the options set out in the clause, will be settled. When that has been done an amount of 1 per cent of the basic pay of the group concerned, from 1 April 1994, will be available either for payment then, if the group concerned so desires, or for use in any subsequent negotiations.

Until the negotiations have been concluded, I am not in a position to comment on the likely outcome in each case. The cost of the 1 per cent payment is estimated at approximately £30 million in 1994 or £40 million in a full year in respect of those groups whose claims have not yet been processed to a conclusion.