Derek McDowell
Question:61 Mr. McDowell asked the Minister for Finance the progress made to date in regard to consideration of proposals for gainsharing within the public service; and if he will make a statement on the matter. [4667/01]
Written Answers. - Gainsharing Schemes.
Paragraph 22 of section 1.4 of Framework 1 of the PPF states:
The parties to the Programme recognise the necessity to examine issues such as new forms of work organisation embracing innovative work practices, multi-grade and cross stream teams, and flexibility in grading, including broad-banding, complemented by imaginative reward and recognition systems including an examination of gainsharing. It is also recognised that these issues are likely to arise in any event from the Benchmarking exercise agreed under this Programme.
The consideration of gainsharing in the public service is dependent on progress on the definition and treatment of gainsharing in the economy generally. Discussion on the tax treatment of gainsharing has taken place in the consultative committee, set up under the Programme for Prosperity and Fairness, to look at the question of the tax treatment of employee financial participation. The report of the committee is being finalised.
I indicated in the context of the publication of this year's Finance Bill that I had considered proposals for the special treatment of payments made under gainsharing schemes but that I did not consider it possible to deal with the matter this year. I will, however, seek to develop a viable option in this area for a future Finance Bill.