Dáil Éireann Debate, Thursday - 24 November 2016
23. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform if he will provide a commitment to full restoration of pay to public sector workers that experienced pay reductions of up to 20% between 2008 and 2011; and if he will make a statement on the matter. [36530/16]
View answerAs the Deputy is aware I am obliged under the legislation to undertake an Annual Review of the operation and effectiveness of the Financial Emergency Measures in the Public Interest Acts (FEMPI) which is laid before the Oireachtas by the end of June each year.
In my last review of the necessity for the continuing application of the measures provided for under the Acts, my decision was informed by 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. To date none of these factors have lessened appreciably, while the risks of international economy instability have, if anything, increased.
In this context the Lansdowne Road Agreement (LRA), which provides a negotiated pathway for public service pay increases through a phased partial unwinding of the FEMPI measures at a full year cost of €844m in 2018, represents a considerable investment in public service remuneration. A comprehensive Collective Agreement of this kind allows for strong fiscal planning, with budget allocations ring-fenced within multi-annual expenditure ceilings and pay increases taking an appropriate share of available fiscal space. This phased and sustainable programme of pay increases underpins the fiscal targets in Budget 2017 and our international commitments to have a prudent fiscal policy under the Stability and Growth Pact. Any further adjustments in the application of the FEMPI measures will be negotiated with public service staff representatives through a further Collective Agreement that is sustainable and affordable at the appropriate time.
