Vol. 572 No. 5
79 Mr. R. Bruton asked the Minister for Finance the basis of his estimate of the total cost of benchmarking; the way in which this relates to the estimate by individual Departments of the cost of the 50% payment falling due on 1 January 2004 at ?610 million plus an additional ?57 million to be found by local authorities; and if he has had cause to revise any of his original estimates of the full cost of benchmarking. [23716/03]
The €610 million cost referred to by the Deputy was based on the replies to parliamentary questions asked to all Ministers about the cost of benchmarking in 2004. It appears that some Departments submitted cumulative figures for 2004 while others gave only the cost of the 1 January 2004 increase – 50%. The question was unclear as to whether the Deputy sought cumulative or increased annual costs.
The original estimate for the annual cost of the benchmarking exercise when the increases were fully implemented was €1.1 billion. This estimate was completed in mid-2002 after the benchmarking body issued its report and it was based on the 2001 data. Based on information compiled at the time of the 2003 Revised Estimates Volume the current projection for the cost of the main benchmarking process is as follows:
Cost of benchmarking
|
Cost in 2003 |
Cost in 2004 |
Cost in 2005 |
Cost in 2006 |
|
|
€m |
€m |
€m |
€m |
|
|
Arrears of first phase(one-quarter from 1/12/01) |
262 |
0 |
0 |
0 |
|
First Phase |
260 |
260 |
260 |
260 |
|
Second Phase(one-half from 1/1/04) |
0 |
515 |
515 |
515 |
|
Final phase(balance from 1/6/05) |
0 |
0 |
151 |
258 |
|
Total |
522 |
775 |
926 |
1,033 |
|
Year-on-Year increases |
522 |
253 |
151 |
107 |
I have had no reason to revise this estimate.
As the Deputy is aware there is an ongoing parallel benchmarking process for craft workers and the related non-nursing and general operative grades. These processes are nearing completion. At this stage the likely annual Exchequer cost of the increases when fully implemented would be of the order of €140 million. The cost of the parallel process is still tentative and will be finalised later this year.
80 Mr. R. Bruton asked the Minister for Finance if all of the action plans due under benchmarking have been approved and published by the verification groups; and the details of the var ious action plans due and their date of publication. [23717/03]
Action plans for Civil Service Departments and offices have been prepared and have been submitted to the Civil Service performance verification group, CSPVG. These action plans have been available on my Department's website since August. I understand that the CSPVG is continuing its work with a view to completing it first assessment within the timeframe set out in Sustaining Progress. Responsibility for action plans for the rest of the public service rests with my colleagues, the Ministers for Health and Children, Education and Science, and the Environment, Heritage and Local Government.
81 Mr. R. Bruton asked the Minister for Finance the process which is envisaged for withdrawing the benchmarking payment in the event of an industrial dispute; if the withdrawal will cover the entire value of the benchmarking award; and the duration of the withdrawal in the event of a dispute. [23718/03]
82 Mr. R. Bruton asked the Minister for Finance if elements of benchmarking action plans are not delivered, if the entire sector will suffer the withdrawal of the benchmarking award, or only specific workers in specific Departments involved. [23719/03]
I propose to take Questions Nos. 81 and 82 together.
Paragraph 19.22 of the public service pay agreement in Sustaining Progress provides that the payment of the final two phases of the benchmarking increases and the three general round increases is dependent, in the case of each sector, organisation and grade, on verification of satisfactory achievement of the provisions on co-operation with flexibility and ongoing change, satisfactory implementation of the agenda for modernisation, maintenance of stable industrial relations and absence of industrial action in respect of any matters covered by the agreement.
Section 26 sets out the verification arrangements. These include the adoption of action plans and the establishment of performance verification groups, PVG, in each main sector. In relation to sectoral verification of progress the steps set out in the agreement are as follows.
The Secretary General responsible for the sector will submit the reports to the PVG together with his or her assessment of progress achieved. Before reporting to the PVG, the Secretary General will inform the appropriate national council of the assessment of progress which he or she intends to convey to the PVG. Where the Secretary General considers it likely that his or her report on the assessment of verified progress achieved would not warrant implementation of a pay increase, the matter will be discussed by the relevant national council before the report is finalised and if he or she still intends so to report will convey any union side comments to the PVG.
The PVG will decide on the basis of the reports submitted to it if the level of progress achieved during the period warrants the payment of the relevant pay increase(s). It will be open to the PVG, if it considers it desirable, to request the Secretary General to reconsider the report, or aspects of it before a final decision is taken by the PVG. In this event, the Secretary General will inform the relevant national council of the response he or she intends to make and will include any union side comments in the response to the PVG.
If the PVG decides in any case that the making of a payment is not warranted, the relevant Secretary General will refer the matter to the relevant national council for discussion before he or she takes a final decision. In the event that a trade union considers that the decision made by a Secretary General is not in conformity with the terms of the agreement, it may have recourse to the provisions of paragraph 19.9 of the Public Service Pay Agreement, which deals with breaches of the agreement.
The agreement provides that progress can be assessed at sectoral, organisational and grade level. If the issue of a payment being withheld arises, whether that should apply at sectoral, organisational or grade level will depend on the circumstances giving rise to the decision not to make the payment.
The agreement provides that the assessment will be made on five occasions under the agreement and, if it arises, the amount withheld will be the increase due on that date. Of course if previous increases have been withheld they too can continue to be withheld if a breach of the agreement has taken place.
