Finian McGrath
Question:450. Deputy Finian McGrath asked the Minister for Public Expenditure and Reform the options available to a person (details supplied) following a severe pay cut after the Haddington Road agreement. [37640/13]
View answerWednesday, 18 September 2013
Questions (450)
Written answers
I am unable to comment on the particular circumstances of the individual concerned.
The provisions in the Financial Emergency Measures in the Public Interest Act 2013 and the related proposals in the recently concluded Haddington Road Agreement (HRA) must be considered in their wider context. The Agreement negotiated will deliver the necessary €1bn saving in the public service pay and pensions bill by 2015 while ameliorating the impacts for public service staff on low and middle incomes to the greatest extent possible. The core pay of 87% of the workers in the public service was not reduced by the legislation.
The Government, in seeking to apply the reductions involved, distinguished between lower and higher paid public servants. The pay cuts applied under the Financial Emergency Measures in the Public Interest Act 2013 apply only to those higher paid public servants on annual salaries of €65,000 or more. In contrast, the related Haddington Road Agreement which secures non-core pay savings and additional productivity from public servants protected the earnings of the majority of public servants below €65,000 to the greatest extent possible commensurate with securing the savings necessary. In contrast, those on salaries over €65,000 have had reductions in their pay ranging between 5.5% and 10% under the Act
I am happy that the agreement reached between the Government and Trade Unions that represent public servants is fair, progressive and balances the interests of public servants with those using and paying for public services.
The Government recognise that the savings sought from the public service pay and pensions bill are extremely difficult and challenging for all public servants and are very conscious of the very significant contributions they have made to date. However, the reductions now required are a necessary further contribution to the fiscal consolidation process required to restore our economic sovereignty and bring our current expenditure deficit under control.