Dáil Éireann debate -
Tuesday, 25 Jun 2002

Vol. 553 No. 5

Written Answers. - Programme for Prosperity and Fairness.

Bernard J. Durkan

Question:

79 Mr. Durkan asked the Minister for Finance the position in regard to the Programme for Prosperity and Fairness; the areas most likely to be addressed through benchmarking; and if he will make a statement on the matter. [14452/02]

Minister for Finance (Mr. McCreevy)

The PPF is a 33 month programme covering the period 2000-2002. Significant progress has been made in its implementation and, to date, eight progress reports have been presented to the Houses of the Oireachtas and to the social partners.

The final 4% pay rise, relating to the final nine months of the programme, is due in 2002, with the implementation date dependent on the particular employment or industry. In the public service, the increase is to be paid no earlier than 1 October 2002, subject to certain requirements in relation to performance indicators and sectoral targets. The public service pay agreement will run until end June 2003.

The Public Service Benchmarking Body was established in July 2000 under the terms of the PPF to examine public service pay and jobs by comparison with the private sector. The benchmarking process and the composition and terms of reference of the body were agreed by the Government and public service unions. The body's report will be finalised on schedule by 30 June 2002.

The terms of reference of the body were wide and gave it freedom to approach its job of comparing pay rates and jobs in the public service and the private sector. It was agreed, as part of the adjustment to the PPF, that one quarter of any increase recommended will be paid retrospectively from 1 December 2001. To meet the potential costs arising from this process I provided €150 million in the budget but since the report is not yet to hand it is not possible to judge whether the budget provision will be sufficient.

The December 2000 adjustment to the PPF also provided that there would be talks between the public service unions and employers about the phasing of the payment of the balance.

The report will need careful consideration and examination when it is received by both the Government and the unions and I expect talks between the two sides to take place shortly after the report is published. The Government will of course have to have regard in any talks to the possible budgetary impact the cost of any recommendations might have and the commitment we have made to keep the Government finances close to balance or in surplus.