John Bruton
Question:103 Mr. J. Bruton asked the Minister for Finance if he will elaborate on the points made on public sector pay in an interview recently published with a trade union magazine (details supplied). [26351/98]
Written Answers - Public Sector Pay.
In the 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.
Any new pay determination system must also support the culture of service to the public and the focus on improving service and performance which is part of the strategic management initiative across the public service. We wish to explore how new public service pay arrangements can meet the aspirations of staff while maintaining the unavoidable limits on public spending as well as delivering the level of service and performance which public service management and public service customers demand.
I expect discussions with the public services committee of the Irish Congress of Trade Unions on a new approach to public service pay in the period beyond Partnership 2000 to begin shortly.