Vol. 522 No. 2
61 Ms O'Sullivan asked the Minister for Finance if he will give the projected percentage pay increases for public sector workers and private sector workers for 2000, exclusive of any tax changes; the way in which these compare with the current rate of inflation; his views on warnings from trade union leaders that the current level of inflation was threatening social partnership; and if he will make a statement on the matter. [18168/00]
For 2000 the Programme for Prosperity and Fairness, provides for an increase of 5.5% in basic pay in the private sector.
Taking account of pay drift, my Department estimates that overall per capita private sector earnings are likely to increase by about 6.5% in 2000 – higher than the recently published inflation rate of 5.2%. When reductions in taxes are included increases in nominal take-home pay may range up to 14% depending on income levels.
The projected pay rate increases in the public service in 2000 are 1% from 1 April, the final phase of Partnership 2000, 5.5 % from 1 October being the first phase of the Programme for Prosperity and Fairness and 3% for certain groups who qualify for the early settlers deal. These pre-tax increases also exceed the current rate of inflation.
The Government is concerned about the possible impact of higher inflation on social partnership and economic progress. Wide ranging measures in relation to housing have been announced. Significant resources have been committed to the Competition Authority, to enable it to tackle evidence of anti-competitive activity and profiteering in sheltered sectors of the economy. Further measures will be announced shortly.
