Seamus Brennan
Question:16 Mr. S. Brennan asked the Minister for Finance if, in view of State expenditure of some £130 million on 10,000 early retirements in the public service, overall numbers are still higher in 1995 than in 1994. [8343/95]
Written Answers. - Voluntary Early Retirement Scheme.
The introduction of a voluntary early retirement scheme in 1987 was part of a package of corrective measures introduced at that time to stabilise the public finances. These measures coincided with a widespread public and political consensus on the need to significantly reduce the level of public indebtedness which could only be achieved by reducing overall levels of public spending.
The voluntary early retirement scheme was generally available in the years 1987 to end 1988. In 1989 and 1990 voluntary redundancy was offered in specific areas where a surplus of staff had been identified or where further significant reductions in numbers were required to meet overall expenditure targets. Approximately 10,000 availed of the scheme at a cost of just over £127 million. This scheme was part of a general policy aimed at reducing public service pay costs and, combined with the effects of natural wastage and restrictions on recruitment, resulted in a significant reduction in overall public service numbers.
While the package of corrective measures introduced from 1987 onwards had some harsh and unwelcome effects on the provision of public services, including health services, these measures did result in a major improvement in public finances. As a result, it has been possible over recent years to improve the levels of services available to the general public while, at the same time, taking full account of wider budgetary constraints and meeting the criteria for budgetary convergence laid down in the Masstricht Treaty.
Improved staffing levels across the public service since 1990 also reflects the implementation of commitments in theProgramme for National Recovery, Programme for Economic and Social Progress and Programme for Competitiveness and Work programmes as agreed by Government and all of the social partners.
During 1995 it is anticipated that public service numbers will increase by approximately 3,600. The bulk of this increase will occur in the health and education sectors — services provided in these areas are, by their nature, very labour intensive and, as a result, these areas bore the brunt of the cutbacks during the 1987 to 1990 period when overall employment in these sectors fell by almost seven-and-a-half thousand.
During 1995 employment across the health services is expected to increase by approximately 2,300. In particular, acute hospital services and childcare services throughout the country will benefit considerably as a result. Additional staffing will also be put in place to improve the level of support available to such groups as the elderly, and people with a physical or mental handicap in our community. Services to meet the needs of persons suffering from AIDS will also be upgraded. In addition, the implementation of EU health-related directives, dental services improvements and measures to relieve general service pressures will take place during 1995.
Education numbers will increase by approximately 1,000 reflecting increased enrolments at second-level and third-level and additional remedial posts and disadvantaged posts at second level and childcare assistance in the primary sector. Retention of approximately 400 posts at first level to reduce pupil/teacher ratios is also provided for in 1995.
The overall increase in public service numbers this year is fully consistent with the spending allocations outlined in the recently published 1995 Revised Estimates Volume.