John Bruton
Question:267 Mr. J. Bruton asked the Minister for Finance if he will elaborate on the points made in an interview recently published in a trade union magazine (details supplied); and if he will make a statement on the matter. [27514/98]
Vol. 498 No. 4
267 Mr. J. Bruton asked the Minister for Finance if he will elaborate on the points made in an interview recently published in a trade union magazine (details supplied); and if he will make a statement on the matter. [27514/98]
In a recent article in IMPACT News the Taoiseach spoke about the need for a new approach to public service pay in the period beyond Partnership 2000. Public service pay is an area of concern to the entire Government and to myself in particular. There are two basic issues behind the desire for a new system of public service pay determination. First, the need to get away from the old approach of leap-frogging pay claims and, second, the need for pay to more closely reflect performance.
We have seen the effects of the old approach over the last year. Pay increases achieved by one group of public service workers became the target increase for other groups on the basis of past relativities or perceived relativities. The pursuit of comparable increases by certain groups was in disregard of the agreed terms of national pay agreements. The use of industrial action was a regrettable feature in a number of cases.
The effect of this system has been a major contributory factor to the substantial increases in the Exchequer Pay and Pensions Bill in recent years. The Pay and Pensions Bill increased by over 10 per cent in 1997 and will increase by 9 per cent in 1998. As public service pay and pensions account for around half of current supply expenditure, such increases put pressure on current public expenditure targets. Any new system of pay determination must recognise the limits on public spending within which the Government must operate.