Dáil Éireann Debate, Tuesday - 31 May 2016
542. Deputy Maureen O'Sullivan asked the Minister for Public Expenditure and Reform why public service pay restrictions that were imposed during times of economic necessity can be maintained, given that gross domestic product figures indicate that Ireland is no longer in recession; and if he will make a statement on the matter. [12544/16]
View answerUnder section 12 of the Financial Emergency Measures in the Public Interest (FEMPI) Act 2013, the Minister for Public Expenditure and Reform is required to review the necessity of FEMPI legislation annually and cause a written report of the findings to be laid before each House of the Oireachtas. In that context the most recent report made under the 2013 Act was laid before both Houses of the Oireachtas by the then Minister on 29 June 2015.
In that report, the Minister found that, having regard to the purposes of the relevant Acts, the overall economic conditions in the State, national competitiveness and Exchequer commitments in respect of public service pay and pensions, the measures put in place by the FEMPI Acts 2009-2013 continued to be needed in 2015. However, the review also noted that for 2016 out to September 2018, the Government had then approved agreed proposals which subsequently gave rise to the Lansdowne Road Agreement (LRA). The FEMPI Act 2015 included a series of measures including the gradual unwinding of the pay reduction measures as they apply to public servants in line with the LRA and the amelioration of public service pension reductions applying to retired public servants. The estimated costs of the measures, which are currently being implemented from 1 January 2016, in respect of public service pay and pensions on a full year basis in 2018 are €844m and €90m respectively.
As Minister for Public Expenditure and Reform, I am required to undertake a further review of the necessity of the FEMPI legislation and report to the Oireachtas before 30 June 2016 next. That report is currently being prepared for laying before both Houses of the Oireachtas.
