Dáil Éireann Debate, Wednesday - 6 July 2016
63. Deputy Thomas Pringle asked the Minister for Public Expenditure and Reform if he will provide an update on his engagement with the Association of Secondary Teachers in Ireland regarding the renewal of financial emergency measures in the public interest, FEMPI, legislation; the way he will seek to minimise the effects of legislation on pay and work conditions into the future; and if he will make a statement on the matter. [19560/16]
View answerUnder section 12 of the FEMPI 2013 Act, I am obliged to review and report to the Houses of the Oireachtas on the operation, effectiveness and impact of the Financial Emergency Measures in the Public Interest (FEMPI) Acts 2009-2013 and consider whether or not any of the provisions of the relevant Acts continue to be necessary having regard to the purposes of those Acts, the revenues of the State and State commitments in respect of public service pay and pensions.
The report on the review undertaken was laid before both Houses of the Oireachtas on 29 June in accordance with the provisions of the Act. Among the considerations which informed the determination by me of the necessity for the continuing application of the measures provided for under the Acts were: the instability in the international economy (including risks posed by Brexit), the still fragile nature of our economic recovery, the need to protect hard won competitiveness gains, the high level of debt, the continuing fiscal deficit, the obligation to comply with the Stability and Growth Pact, and the need to balance competing demands within the available fiscal space.
A meeting was held at the end of last year between senior representatives of the ASTI and officials of my Department, during which the ASTI representatives were provided with a comprehensive appraisal of the FEMPI legislation and the implications of its statutory implementation. Given the statutory context of the review, it was not appropriate for the Minister to meet directly with any body representing persons affected in the completion of this review.
The terms of the Lansdowne Road Agreement (LRA) reducing the impact of the pay reductions are being implemented through the Financial Emergency Measures in the Public Interest Act 2015 over the three years to 2018 at a full final year cost of €844m. Additional provisions provide for a similar programme of reductions in the impact of the Public Service Pension Reduction at a full-year cost of €90m in 2018.
