Michael Ferris
Ceist:12 Mr. Ferris asked the Minister for Finance if he will make a statement on an NESC report which indicates that public service pay has been increasing at a rate significantly ahead of wages in the private sector. [16136/99]
Other Questions. - Public Service Pay.
As the Deputy is aware, material was recently quoted in the media from a draft NESC document. The NESC, as requested by the Taoiseach, is preparing a strategy report on the issues and priorities to be addressed in the negotiation of a possible successor to Partnership 2000. The NESC document from which the material was leaked is a confidential first draft and has not yet been discussed by the council. As the Deputy will appreciate, it would be wholly inappropriate for me to comment further on leaked material from a confidential draft document.
As regards trends in pay in general, the Government has emphasised the need for continued restraint in both the public and private sectors. This is important if we are to maintain our competitiveness and sustain our strong economic growth of recent years into the future. As regards the public sector, the Government is fully aware of the difficulties and pressures on the pay front. This is why the Taoiseach identified the need for a new approach to public service pay in the period beyond Partnership 2000 and invited the public services committee of the ICTU to enter into discussions on this issue. These discussions are still at an early stage.
At times it seems that the Minister is only willing to comment on leaked documents when they have been leaked comprehensively. I presume he sees no need to comment on a partial leak.
I publish documents when they have been leaked comprehensively.
What work has been done, in the context of a successor agreement to Partnership 2000, in terms of developing alternative forms of remuneration, particularly in the public sector?
At the plenary session in July 1998, the Taoiseach informed the social partners that we would be obliged to formulate a new method of determining remuneration rates in the public service and referred to linking performance to pay. As already recognised by the Taoiseach, myself and trade union representatives, this is a very difficult area. Tentative discussions in respect of it have taken place between the trade unions and Government officials but the negotiations on a successor to Partnership 2000 will not commence until later in the year. These matters can be discussed further at that stage.
With regard to performance related pay and a performance management system, the Minister informed me in February that he expected talks with the trade unions to be completed by the end of March. From his reply, I understand that they are still ongoing. Will the Minister inform the House with regard to the current position?
Discussions on the introduction of a performance management system have been ongoing for some time. I hope to conclude those discussions shortly and initiate a roll-out of the proposals put forward. The discussions in question began during, if not before, Deputy Quinn's term of office as Minister for Finance.
The question of performance related pay is a separate issue. A case could readily be made that you cannot have one without the other. However, they are being dealt with separately. The question of introducing a performance management system has been on the table for some time and the negotiations thereon are expected to conclude shortly. However, the question of performance related pay will be dealt with in the context of the Taoiseach's message to the plenary session in July 1998. That will form part of the negotiations on a successor to the Partnership 2000 agreement. There are two separate items under discussion.
If the rates of pay which apply to higher management level public servants will not keep pace with those in the private sector, is the Minister concerned that key personnel could be lost?
In respect of an earlier question, Deputy McDowell expressed concern about trying to recruit people to the public service. My comments are not based on statistical evidence – I am sure it will emerge in time – but I do not believe that higher level personnel in the Civil Service are moving outside at present. However, there has always been a tradition that people leave the public service on foot of better offers from the private sector. Difficulties exist in trying to attract people to enter the lower public service grades because they can obtain better remuneration in the private sector. For some reason, it is more attractive for people to enter the private sector at present.
With regard to the rates of pay that apply to higher level management personnel in the Civil Service – this also involves personnel in the commercial semi-State sector – Deputy Deenihan will be aware of the developments which took place following the Buckley report. I commissioned a firm of consultants to prepare a further report on commercial State-sponsored bodies. The next review body on higher remuneration is due to commence its work on 1 January 2000.