Dáil Éireann debate -
Thursday, 20 Mar 1997

Vol. 476 No. 6

Written Answers. - Partnership 2000.

Charlie McCreevy

Question:

8 Mr. McCreevy asked the Minister for Finance the total cost to the Exchequer pay roll of implementing Partnership 2000; if he will apportion that for each of the years from 1997 to 1999; and if he will make a statement on the matter. [7724/97]

Minister for Finance (Mr. Quinn)

The pay agreement under Partnership 2000 provides for an increase of 9.25 per cent over 39 months. Applied to the public service, the total increase in the Exchequer pay and pensions Bill is estimated at £496 million on a full year basis by 2001. On a year by year basis, the estimated additional costs will be as follows:

	£ million	per cent
1997	24	0.5
1998	142	2.75
1999	175	3.25
2000	141	2.5
2001	14	0.25

The total increase provided for is in line with the provisions in the private sector. However, in the case of the public service, savings will be made relative to the private sector in two ways. Firstly, instead of the full 2.5 per cent first phase applying for a year from the end of the current agreement, the increase in the public service will be limited to the first £200 of basic weekly pay for the first nine months, after which the full increases will apply. Secondly, the local level negotiations provision of 2 per cent which applies from the middle of the second year in the private sector, will apply in the third year of the agreement in the public service. That payment will be conditional on verified progress to a satisfactory level on implementation of the public service modernisation programme set out in Chapter 10 of the partnership.

Full budgetary provision has already been made for the Partnership 2000 pay increases in the 1997 budget and in the multi-annual budgetary framework for later years.