Mick Barry
Question:108. Deputy Mick Barry asked the Minister for Public Expenditure and Reform the reason FEMPI remains on the Statute Book; and if he will make a statement on the matter. [40489/17]
View answerTuesday, 26 September 2017
Questions (108)
Written answers
The full year cost of repealing the Financial Emergency Measures in the Public Interest (FEMPI) legislation as it applies to public service employees would be €1.4 billion post full implementation of the terms of the Lansdowne Road Agreement (LRA).
Pay bill increases of this magnitude in one year would: exceed available additional resources; violate the terms of EU Stability and Growth Pact; increase the deficit; increase the national debt and result in reduced shares of Government Expenditure for capital investment and other measures.
By contrast the phased approach to unwinding FEMPI which commenced with the LRA and which will now continue with the Public Service Stability Agreement 2018-2020, allows for strong fiscal planning, with dedicated resources ring-fenced within multi-annual expenditure ceilings, without compromising service delivery or capital investment plans.
The new Agreement, voted on and endorsed by ICTU, achieves the right balance between addressing the legitimate expectations of public service workers for increases in their pay while ensuring that the Government continues to exercise a prudent approach to the overall management of our public finances while supporting the ongoing delivery of our public services. As such it delivers a clear negotiated pathway for unwinding the remaining FEMPI legislation over the next few years.