(Limerick East) asked the Minister for Finance which of the alternative procedures available to the Government in accordance with the provisions of paragraph 3.2 (a) of the draft agreement on pay in the public service they intend to follow; if he has had any discussions with the ICTU in accordance with paragraph 3.2 (b) of the agreement; and if the Government intend implementing, in full, the pay recommendations of the Gleeson report in 1989.
Ceisteanna— Questions. Oral Answers. - Public Service Pay.
6.
Clause 3.2 of the public service pay agreement provides for the processing and implementation of claims for special increases as follows:
(a) 40 per cent of such increases shall be applied with effect from 1 July 1989. If, however, the Government consider that these payments would have such serious financial and budgetary consequences as to put at risk the central objectives underlying the Programme for National Recovery they shall consult with the ICTU not later than 1 May 1989 with a view to arriving at a mutually acceptable solution which should include provision for reference to a third party, if necessary.
(b) payment of the balance of the increases shall be the subject of discussion not earlier than 1 May 1989 with a view to arriving at a mutually acceptable solution which should include provision for reference to a third party, if necessary.
In my Budget Statement I indicated the Government's concern at the build-up of special increases in the public service and announced my intention to invite the Irish Congress of Trade Unions to discussions on the whole issue. I met with congress on 8 March last and discussed the position frankly with them. Since then my officials have met with congress representatives on five occasions and talks are continuing. Because of the sensitivity of the issues being discussed both parties have agreed that there should be no public comment on the progress of the talks.
As regards the implementation of the pay recommendations contained in the report of the Review Body on Higher Remuneration in the Public Sector, the Deputy will appreciate that it would not be helpful for me to comment on a particular case or aspects of it at this stage.
(Limerick East): May I take it from the Minister's reply that 40 per cent of such special awards will not necessarily be paid from 1 July and that it is a subject for discussion under the terms of paragraph 3.2 (a) of the agreement?
The question of the payment of 40 per cent or part of 40 per cent of such increases is the subject of negotiations at present, but it does not necessarily follow that the 40 per cent of such increases will be paid. It is a matter for negotiation at the moment.
(Limerick East): In accordance with paragraph 3.2 (a) of the agreement, have meetings been arranged to negotiate the payment of the residual 60 per cent of the special awards?
The question of payment of the 40 per cent and the remainder of the special increases is part of the discussions that are taking place.
Mr. Noonan (Limerick East) rose.
Deputy Noonan will appreciate that the Chair is very anxious to dispose of all priority questions within the time limit and the co-operation of the Members concerned is very important.
(Limerick East): May I ask a final supplementary?
Certainly, Deputy.
(Limerick East): First, could the Minister inform us if the £30 million provided in the budget covers the full payment of 40 per cent of such special increases in addition to provision for payment of 40 per cent of the Gleeson award? Second, why does the Minister refuse to comment on the Gleeson award when the Report of the Review Body on Higher Remuneration in the Public Sector says that only the most serious considerations of the national interest, not at present foreseen, could justify the further postponement of the implementation of the balance of the increases in this respect beyond 1989?
My objective in these talks is to negotiate a settlement which would ensure that the £30 million budget provision for the cost of special increases this year will not be exceeded. It is also an objective to spread the cost of the increases over a number of years so as to avoid an excessive increase in the pay bill in any particular year, to minimise the impact of special increases in 1990 and to place a moratorium on a further series of special increases. It would be totally inappropriate for me, as the Deputy will appreciate, to comment on the Gleeson report case referred to by him. Such a comment would only be seen to prejudice the outcome of the discussions, so I am not prepared to comment on any aspect of the discussions.