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Economic Growth Initiatives

Dáil Éireann Debate, Wednesday - 26 February 2014

Wednesday, 26 February 2014

Questions (105)

Bernard Durkan

Question:

105. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which the Croke Park and Haddington Road agreements continue to contribute to meeting expenditure targets; if any adjustment is likely to prove necessary; and if he will make a statement on the matter. [9954/14]

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Written answers

I refer the Deputy to my response on 22 January, 2014 to Parliamentary Question No. 91, and my response on 21 November, 2013 to Parliamentary Question No. 23.  As I outlined in those responses, I am satisfied that the Croke Park Agreement delivered on its objectives by facilitating significant cost savings amounting to €1.8 billion over its lifetime, with the vast majority of commitments around reform and changed work practices being substantially delivered. This was a view shared by the Implementation Body in their final report.  

In relation to the Haddington Road Agreement, the Government has set a target of a €1 billion reduction in the Public Service pay and pension bill by 2016.  That remains the key objective of the Agreement and I am satisfied that the various measures negotiated under the Agreement will deliver on this target. The focus of Public Service Management is now firmly on the delivery of the required level of savings.

In terms of cost reduction in 2013, approximately €300 million in savings, arising from the implementation of various measures under the Agreement, was incorporated into the various Votes in the context of the Revised Estimates for 2013.  

The measures and reforms implemented under the Agreement helped to ensure that spending remained in line with profile and resulted in Ireland delivering on our fiscal target for 2013. In addition to these monetary targets, a number of changes in work practices and reforms, such as additional working hours, have been implemented since 1 July, 2013.

Finally, the Haddington Road Agreement will act as a key enabler for the delivery of the next phase of the Government's ambitious reform agenda, which is set out in detail in the recently published Public Service Reform Plan 2014-2016.

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