Public Sector Staff Increment Payments

Dáil Éireann Debate, Wednesday - 24 October 2012

Wednesday, 24 October 2012

Questions (80)

Michael Creed

Question:

80. Deputy Michael Creed asked the Minister for Public Expenditure and Reform further to Parliamentary Question No. 106 of 10 October 2012, if he will provide further information regarding the €810 million in sustainable savings in the first two years of the Croke Park Agreement, specifically, if he will quantify the amount of savings both in year one and year two that is directly attributable to the decision made by the Government prior to the commencement of the Croke Park Agreement to reduce public sector pay; if he will acknowledge that these savings have been achieved during the lifetime of the Croke Park Agreement, but are a consequence of an executive decision prior to the commencement of the agreement; if he will also quantify the savings achieved due to the voluntary redundancy scheme in public service and if he will quantify the cost of increments paid to date and the projected cost of these increments to the end of the agreement [46738/12]

Written answers

Minister for Public Expenditure and Reform

Further information regarding the €810 million in sustainable savings was outlined in Parliamentary Question No. 106 of 10 October 2012. To reiterate, over the first two years of the Public Service Agreement 2010-2014, €810 million in sustainable savings have been achieved. This comprises €289 million in respect of the first year of the Agreement and €521m in respect of the second year. Full details of these figures, as well as a breakdown by sector, are available in the two Annual Progress Reports published by the Implementation Body to date. These reports are available on its website at www.implementationbody.gov.ie/publications.

The savings in the public service pay bill reported by the Body are based on the reduction in public service staff numbers during the lifetime of the Agreement only. They are calculated based on average annualised savings per employee arising from the reduction in public service staff numbers during the relevant review period. The Government have agreed to accelerate the programme of staff reductions in order to maximise paybill savings. Where staff surpluses are identified a targeted voluntary redundancy (VR) scheme would be made available for selected areas throughout the Public Service.

Identification of staff surpluses is underway. My Ministerial colleagues are actively examining particular work areas, bodies, locations or grades at which voluntary redundancy can be targeted because of changes to work configuration or service delivery models, for example. Of course there will be full regard for the skills needs and priorities of Departments now and into the future during this process.

Final decisions on numbers reductions to be achieved in each sector will take account of the surpluses identified by Ministers in respect of their portfolios and of expected rates of retirements in those sectors over the next few years. A full cost benefit analysis will of course be required as part of this assessment. When this assessment has been completed further details of this scheme will be made available by my Department. In relation to increments, I would refer the Deputy to my reply to Question No. 32625/12 of 4 July.