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Dáil Éireann debate -
Tuesday, 25 Feb 2003

Vol. 562 No. 1

Written Answers - Social Partnership Agreement.

John Deasy

Question:

133 Mr. Deasy asked the Minister for Finance his estimate of the cost of spending commitments by Government in the new special partnership deal. [5451/03]

The public service pay agreement under the proposed social partnership agreement, Sustaining Progress, provides for a pay increase of 7% over an 18 month period with an initial six months pay pause. This increase is to apply as follows: 3% from 1 January 2004; 2% from 1 July 2004; and 2% from 1 December 2004. It is estimated that the cost of implementing these increases is €548 million in 2004 and €928 million in 2005.

In addition to this increase the awards recommended by the Public Service Benchmarking Body would be implemented as follows: 25% of the increases in 2003 backdated to 1 December 2001; 50% of the increases from 1 January 2004; and 25% of the increases from 1 June 2005. The estimated cost of implementing the benchmarking increase is €565 million in 2003, of which €290 million relates to arrears from 1 December 2001, €825 million in 2004 and €985 million in 2005. In the public service the payment of the increases will be dependent on the achievement of measures to modernise the public service and the maintenance of industrial peace.

It is not possible at this stage to provide an estimate of the cost of several of the commitments made under the agreement as the details of what is to be done is to be the subject of further discussion and examination.

With regard to redundancy payments, Part 2, "Pay and the Workforce", section 3.1 states, "Agreement to enhance statutory redundancy terms to provide for two weeks pay per year of service, with the abolition of differentiation by age and to retain the bonus week in the calculation of payments."
An extra sum of €44 million over and above the level contained in the Abridged Estimates Volume, €50.8 million, will be provided in the forthcoming Revised Estimates Volume in respect of redundancy and insolvency payments in 2003 from the social insurance fund.
With regard to social housing, it is intended that the special affordable housing initiative proposed in the agreement will be a fully commercial exercise with houses being made available for sale on a full-cost recovery basis. Therefore, the initiative will not impact on the Exchequer.
With regard to the Labour Relations Commission and Labour Court, a sum of €1.1 million will be provided on foot of the new social partnership deal. The funds for this subhead now stand at €3,874,000. Page 75, paragraph 8.10 states:
The Government undertakes to resource the Labour Relations Commission and Labour Court so as to enable them to process claims in a timely manner. The timeliness with which claims under this section of the agreement are processed will be reviewed on an ongoing basis in consultation with the parties.
With regard to work-life balance, €250,000 has been provided to cover the activities of the National Framework Committee for Work-Life Balance Policies. Page 81, paragraph 12.5 states:
The parties agree that the work of the national Framework Committee for Family Friendly Policies established under the PPF will continue under a new committee . . . the activities of the Committee will be supported by a specific budget.
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