Dáil Éireann Debate, Wednesday - 25 March 2015
21. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform if he will report on any meetings he has had or intends to have with the relevant unions on restoring public service pay; and if he will make a statement on the matter. [11686/15]
View answerThe Haddington Road Agreement forms the cornerstone of pay policy in the public service until 2016, when it is due to expire. The Agreement, which contains a number of measures directly affecting the pay of staff, is delivering and is making a significant contribution to the achievement of the Government's fiscal consolidation deficit target of below 3% GDP. The ongoing recovery in the economy is in no small part due to the contribution of public servants to keeping the cost of the public service paybill at sustainable levels.
Effective management of our fiscal affairs also requires the Government to plan for and address the public service pay and pension reduction measures which are based on emergency legislation. I have indicated my intention to enter into discussions later this year with the public service unions, and the representatives of public service pensioners, on successor arrangements to Haddington Road and on the gradual wind down of the Financial Emergency Measures in the Public Interest (FEMPI) Acts. The public service unions have also indicated their intention to submit pay claims this year, should economic circumstances permit. Any discussions on pay will, of course, take place in the context of the State's fiscal position and the pace of financial recovery for this year and 2016. My intention is to have the first quarter Exchequer returns available to me in advance of discussing with my Government colleagues the appropriate basis for entering discussions.
Public servants, in common with all employees, will have seen benefits this year to their take home pay arising from the tax reductions the Government has been able to introduce following its prudent management of the economy. I have, however, made it clear that public service pay rates will continue to be frozen in 2015 the 7th year in which there will have been no pay increases for public servants and, as we know, there have been 2 or 3 actual cuts in wages. It is now appropriate for the Government to plan for the development of a sustainable public service pay and pensions policy that will continue to support our ongoing economic recovery over the medium term. Having worked over the last number of years to restore the health of the public finances the Government is determined that any outcome of discussions with unions is consistent with our overall financial position.
