Wednesday, 9 Jul 2014

Departmental Agencies Board Remuneration

Questions (149)

Mary Lou McDonald

Question:

149. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the annual saving to the Exchequer if all State agency board fees were reduced by 25%. [30142/14]

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Written answers

Minister for Public Expenditure and Reform

This question is more appropriately addressed to individual Departments as such information is not centrally held by this Department.

Public Sector Staff Remuneration

Questions (150, 151)

Mary Lou McDonald

Question:

150. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the net and gross saving to the Exchequer if all public sector pay, excluding hospital consultant pay, were capped at €100,000. [30143/14]

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Mary Lou McDonald

Question:

151. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the net and gross saving to the Exchequer if all public sector pay was capped at €100,000. [30144/14]

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Written answers

Minister for Public Expenditure and Reform

I propose to take Questions Nos. 150 and 151 together.

Based on data currently available in my Department if all public service pay was capped at €100,000, the gross Exchequer savings would be some €248m of the estimated public service pay bill for 2014, reduced to €75m if the pay bill for hospital consultants were excluded. The total estimate is some €42m less than the previous estimate of €290m. That was given prior to the most recent reductions in pay arising from the Financial Emergency Measures in the Public Interest Act, 2013 and reflects the progressive nature of the pay cuts as they applied to higher paid public servants. It should also be noted that the pay reductions have been applied uniformly to all public servants in the relevant pay bands, and a particular group of serving public servants cannot be excluded from the application of the financial emergency measures.

The estimate does not take account of the impact of the Pension Related Deduction and any offsetting reductions in taxes and levies. As the combined effect of the estimated marginal tax rate and the pension related reduction at a pay level for a public servant of €100,000 p.a. or higher is at least 62.5%, the estimated net savings would be reduced to some €93m or some €28m if hospital consultants are excluded.

Semi-State Bodies

Questions (152)

Mary Lou McDonald

Question:

152. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform if he will provide in a tabular form a list of all non-commercial State sponsored bodies under his remit. [30145/14]

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Written answers

Minister for Public Expenditure and Reform

In response to the Deputy's question the following is a list of all non-commercial State-sponsored bodies under my remit:

- Institute of Public Administration

- Special EU Programmes Body (SEUPB).

Semi-State Bodies Remuneration

Questions (153)

Mary Lou McDonald

Question:

153. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform if he will provide in a tabular form the annual salary of all chief executive officers in commercial State company under his remit. [30146/14]

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Written answers

Minister for Public Expenditure and Reform

In response to the Deputy's question I can confirm that the annual salary of the CEO of An Post National Lottery is €250,000. There are no other commercial State companies under my remit.

Pension Provisions

Questions (154)

Mary Lou McDonald

Question:

154. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the saving to the Exchequer, following implementation of the Haddington Road agreement, if he imposed the following public sector pension bands (details supplied) to all public sector pensions; and if the amount saved includes non-commercial State sponsored bodies, local authorities and hospital consultants. [30147/14]

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Written answers

Minister for Public Expenditure and Reform

Given the data currently available to it, my Department is not in a position to produce a sufficiently detailed and reliable estimate of the Deputy's proposals for multiple adjustments to the Public Service Pension Reduction (PSPR) which applies to public service occupational pensions in payment under the Financial Emergency Measures in the Public Interest Acts 2009 to 13, especially as it would entail the imposition of multiple and substantial changes to the existing band-specific rates of PSPR. It is to be noted that the recent Financial Emergency Measures in the Public Interest Act 2013 underpinned a further progressive increase to the rates of PSPR applicable to pensions currently in payment.

Question No. 155 answered with Question No. 142.

Public Sector Staff Remuneration

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Written answers

Minister for Public Expenditure and Reform

I propose to take Questions Nos. 156, 173 and 174 together.

I refer to my reply to Question No. 149 of 19 December 2013.

Oireachtas Members' Remuneration

Questions (157)

Mary Lou McDonald

Question:

157. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform if he will provide in a tabular form details of Oireachtas allowances (details supplied). [30150/14]

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Written answers

Minister for Public Expenditure and Reform

I am assuming that the Deputy is referring to allowances payable in addition to salary to certain members of the Oireachtas as listed in the details supplied.

The information sought is set out as follows.

Annual Salary Allowance with effect from 1 July 2013	-
Ceann Comhairle	€70,282
Leas-Cheann Comhairle	€34,381

Annual Salary Allowance with effect from 1 July 2013
Cathaoirleach	€38,160
Leas-Chathaoirleach	€19,846
Leader of the Seanad	€15,255

Payments to Holders of Specified Positions in Dáil Éireann

Position	Rates of annual allowance
Assistant Government Whip	€13,800
Assistant Whip to the Fine Gael Party	€6,900
Assistant Whip to the Labour Party	€5,520
Whip to the Fianna Fáil Party	€17,480
Assistant Whip to the Fianna Fáil Party	€8,740
Whip to the Sinn Féin Party	€5,520
Assistant Whip to the Sinn Féin Party	€2,760
Whip to the Socialist Party	€5,520
Whip to the People Before Profit Party	€5,520

Payments to Holders of Specified Positions in Seanad Éireann

Position	Rates of annual allowance
Deputy Leader of the House	€5,989
Government Whip	€2,682
Assistant Government Whip	€792
Fianna Fáil Leader	€5,989
Independent Group of Nominee Senators' Leader	€2,682
Independent Group of University Senators' Leader	€2,682
Fianna Fáil Whip	€2,682
Independent Group of Nominee Senators' Whip	€792
Independent Group of University Senators' Whip	€792

Question No. 158 answered with Question No. 143.

Oireachtas Members' Expenses

Questions (159)

Mary Lou McDonald

Question:

159. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the annual saving to the Exchequer if the Oireachtas members' mobile phone allowance was abolished. [30152/14]

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Written answers

Minister for Public Expenditure and Reform

The current provision available under the Direct Purchase Scheme to TDs and Senators is a maximum of €750 every 18 months for the purchase of one mobile phone, car kit, installation costs and insurance subject to an application with receipts and proof of all of the expenditure incurred. I am informed by the Oireachtas that the cost of the scheme for the period 01 January 2013 to 31 December 2013 was €19.906.12.

Question No. 160 answered with Question No. 144.

Question No. 161 answered with Question No. 145.

Haddington Road Agreement Savings

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Written answers

Minister for Public Expenditure and Reform

I propose to take Questions Nos. 162 and 166 to 172, inclusive, together.

Overall Context

The Public Service Exchequer Pay Bill will have been reduced by 22% from €17.5 billion gross in 2009 to an estimated €13.6 billion net by the end of 2014. The Government agreed the Haddington Road Agreement with the objective of facilitating an underlying cost reduction by €1 billion in the Public Service Pay and Pensions Bill by 2016, through the implementation of a number of central and sectoral measures provided for in the Agreement.

In 2013, the total amount of allocated savings arising from the implementation of measures under the Agreement was almost €300m. Of this total, approximately €251m was allocated to Exchequer pay savings with further savings of €46m, arising from pensions and a number of other non-Exchequer sources (e.g. Local Authorities, Central Bank), being incorporated in advance in the context of the Estimates process.

In 2014, a further €465m in savings arising from the implementation of measures under the Agreement was incorporated into the budgetary arithmetic. This reflects the full year impact of various measures implemented in 2013, as well as measures which are to be implemented in 2014, such as the deferral of incremental progression. This brings the total amount of savings allocated to date under the Agreement to €762m.

While the savings allocated under the Agreement in 2013 helped to bring the Public Service Pay and Pensions Bill to a more sustainable level, it has also allowed the scope to recruit new staff to front-line services, particularly in the Education Sector and the Health Sector. This re-investment of some of the pay bill and efficiency savings is a key part of the Public Service Reform Agenda - a dividend from the reforms we are delivering - and will help sustain and improve key public services.

This is why at the time of the last Budget, the Government was able to adjust the target for Public Service numbers in 2014, to allow more scope for additional staff in classrooms and hospital wards. The underlying savings delivered by the Haddington Road Agreement are being used in part to fund additional posts in these areas as the Exchequer Pay Bill approaches a more sustainable level while still maintaining tight control of the overall Exchequer Pay Bill.

Central Measures

Of the €1 billion target, the pay reduction to those earning over €65,000 will deliver approximately €210m in savings. Other central measures, including pension reductions and increment pauses will deliver in the order of €130m, bringing the total amount of savings from central measures to over €340m.

Summary of savings from Central measures (34%)

-	Full year
Reduction in higher pay	€210m
Increment deferrals	€60m
Other measures - including pensions	€72m
Total	€342m

Productivity

The Agreement will deliver an unprecedented increase in productivity across the Public Service, through the provision of almost 15 million additional working hours annually, and a range of other efficiency and reform measures. While the application of the additional hours varies by sector depending on local patterns in the demand for services, the scale of ongoing reductions in staff numbers and the extent of overtime and agency payments, the overarching objectives of the additional hours are to reduce the requirement for paid overtime hours and agency costs; to allow management to maintain services against the backdrop of reduced staff numbers; and to facilitate amendments to the supervision and substitution allowance in the education sector.

These additional hours will facilitate the delivery of an estimated €431m in savings as follows:

Summary of savings from productivity measures (43%)

-	Full year
Reduced requirement for overtime and agency working	€131m
Elimination of supervision and substitution allowance	€125m
Facilitating headcount reduction	€175m
Total	€431m

Sector Specific Measures

There have been numerous specific measures agreed at the sectoral level. These measures are helping to deliver the greatest return for each sector both in terms of cost savings and efficiency gains and ensuring that each sector is making a fair contribution to the overall savings target. These measures include, for example, changes to overtime rates and non-core payments. In total, these sector specific measures and Agreements will yield savings of some €229m.

Summary of savings from sector specific measures (23%)

-	Full year
Reductions in Overtime rates and non-core payments	€77m
Other sector specific measures e.g. graduate nurse scheme	€152m
Total	€229m

Conclusion

With approximately two years remaining in the lifetime of the Agreement, over 75% (€762m) of the €1 billion reduction targeted, has been incorporated into the relevant Votes. It is clear that the Haddington Road Agreement has facilitated significant reductions in the Public Service Exchequer Pay Bill, and it is critical that public service management continue to pursue the maximum savings that are enabled by the Agreement. In this context, I would highlight the fact that the net Public Service Exchequer Pay Bill reduced by €210m in 2013. This reduction was enabled, in part, by the implementation of various measures under the Haddington Road Agreement which helped to ensure that spending remained in line with profile and resulted in Ireland delivering on our fiscal target for 2013. The Public Service Exchequer Pay Bill will reduce by approximately €500m in 2014 from €14.1 billion net in 2013 to an estimated €13.6 billion net by end 2014.

The Government has also been enabled to apply some of the Pay Bill resources saved under the Haddington Road Agreement into employment in key front-line public services.

Questions Nos. 163 and 164 answered with Question No. 144.