asked the Minister for the Environment if he has satisfied himself that any savings obtained through the voluntary redundancy scheme to the Exchequer will effectively be negated for local authorities in view of the fact that continuing superannuation payments for those who opt for the scheme will have to be borne annually by the relevant local authority up to a maximum of half the original salary, the net effect of which would be a decrease in the workforce with an increase in the pay bill; and if he will make a statement on the matter.
Written Answers. - Public Service Voluntary Redundancy Scheme.
139.
The Government's voluntary redundancy/early retirement scheme is applicable to local authorities as one of a range of measures aimed at maximising savings on manpower costs. While local authorities will meet the cost of pension payments to those who accept the terms of the scheme, additional financial assistance will be made available to local authorities from the Exchequer to meet in full the cost of all lump sum severance payments coming within the scope of the scheme. Overall, significant savings for local authorities on present manpower costs are expected.