Mary Harney
Ceist:22 Miss Harney asked the Minister for Finance his views on the jobs targets in the Programme for Economic and Social Progress and its impact on the public sector wage bill.
Written Answers. - Programme for Economic and Social Progress Jobs Target.
The Programme for Economic and Social Progress did not contain any jobs targets for the overall economy. However, our employment performance over the last three years has been very good. Between 1990 and 1993, the level of employment was maintained in the face of prolonged recession experienced by many of our trading partners.
I would also refer the Deputy to the reply given by the Taoiseach on 12 October last, in which he outlined the considerable progress achieved in implementing the recommendations of the Task Force on Employment set up under theProgramme for Economic and Social Progress.
Over the period of theProgramme for Economic and Social Progress (PESP) i.e. from 1991 to 1993, the Exchequer Pay and Pensions Bill which covers the cost to the Exchequer of pay and pensions of civil servants, the Oireachtas, the defence forces and gardaí together with the amounts included for pay and pensions in allocations to the health and education services and non-commercial state sponsored bodies increased by an estimated £878 million or 28 per cent. Of this amount,
—pay increases directly attributable to the general increases due under theProgramme for Economic and Social Progress itself account for an estimated £350 million despite the arrangements made to defer payment of the full amounts due for budgetary reasons;
—a number of special pay increases which had been deferred for payment by virtue of arrangements made during theProgramme for National Recovery were subsequently agreed for payment in the course of the Programme for Economic and Social Progress at an estimated cost of £312 million; and
—other provisions for increased costs covering such matters as service improvements in health and education, increments and technical adjustments accounted for the balance of £216 million.
The carryover cost of restoring the 3.75 per cent third phase of theProgramme for Economic and Social Progress increases from 1 December next and the cost of meeting arrears due to the imposition of ceilings of £5 per week and £6.50 per week on the second and third phases of 3 per cent in 1992 and 3.75 per cent in 1993 will amount to £186 million in 1994.
Meeting these commitments to public servants caused formidable budgetary problems during the lifetime of theProgramme for Economic and Social Progress. It became necessary to reschedule payment from time to time in order to enable the Government to continue its responsible approach to overall management of the public finances which itself is a primary objective of the macroeconomic strategy set out in the Programme for Economic and Social Progress and agreed with the social partners. The fact that this was achieved within the consensus arrangements underpinning the Programme for Economic and Social Progress is a tribute to all concerned.