Dáil Éireann debate -
Wednesday, 22 Jan 1997

Vol. 473 No. 4

Written Answers. - Departmental Estimates.

Colm M. Hilliard

Question:

129 Mr. Hilliard asked the Minister for Finance the reason for the expenditure increase under Vote 45, which is £110 million in 1997 and was £25 million in 1996 Estimates for the public services; and if there will be a similar increase for 1998. [1679/97]

Minister for Finance (Mr. Quinn)

Under normal Estimates procedure, provision is included in the Votes concerned for, among other things, the costs of pay increases on which agreements have been reached. A separate contingency provision is normally included on a global basis in the Vote for Increases in Remuneration and Pensions (Vote 45) to meet the estimated cost of other pay increases which are still being negotiated under the terms of prevailing policy on pay in the public service. The total cost of pay increases for which provision is made in the Estimates in any particular year is, therefore, the sum of amounts for settlements on each Vote and the global contingency provision for claims which are still in procedures.

Funding is made available late in each year from this global provision to the Vote concerned to cover the costs, after account is taken of available savings which arise in respect of pay increases for which no provision had been made in these Votes.

Accordingly, the contingency amounts included in the Vote for Remuneration depend on the state of negotiations at the time of publication of the Estimates Volume. The subsequent draws on the global Vote depend on the total cost of pay increases arising and the availability of any offsetting savings on the Vote concerned. Thus, the amounts provided on a global basis vary enormously from year to year and are not comparable in any way on a year to year basis.

The total increase in the Exchequer pay and pensions bill in 1996 due to local bargaining settlements under the PCW was £27 million of which only £9.7 million came from the Vote for Increases in Remuneration and Pensions, the rest being provided in the individual Votes concerned. As a result, there was a saving of over £15 million on the Vote for Increases in Remuneration and Pensions in 1996. This was mainly because of the slow rate of settlement of local bargaining negotiations in 1996. The estimated cost in 1997 of these delayed negotiations together with the cost of other negotiations in 1997, is £110 million, which is included in the Estimate for Increases in Remuneration and Pensions for 1997.

At this early stage in the year, I am not prepared to speculate about the need for, or the possible size of, a Vote for Increases in Remuneration and Pensions in 1998.