I welcome the Minister for Public Expenditure and Reform, Deputy Howlin, to the House and I call on him to proceed with the Bill.
Oireachtas (Ministerial and Parliamentary Offices) (Amendment) Bill 2013: Second Stage
Question proposed: "That the Bill be now read a Second Time."
Since taking office the Government has shown that it is committed to the stabilisation of the public finances through ongoing and sustainable reductions in the cost of the public service, including those associated with the Oireachtas and the political expenses regime. All of us, personally and as public representatives, are well aware of the vast impact of the difficult decisions forced upon this Government due to the parlous state of the public finances which we inherited.
Taxes have been increased, spending has been reduced and public service workers have suffered significant reductions in their pay. However, these actions were necessary to ensure the very financial survival of this State. Those decisive actions have enabled the Government to stabilise the deficit and have led to a reduction in the cost of borrowing by the State.
As stated in the programme for Government, there is a clear need for our political system to embrace change and to lead by example and the Government has done that. Significant reductions have been effected to the pay and allowances of Members of the Oireachtas through a number of measures since 2009, most recently through the Financial Emergency Measures in the Public Interest Act 2013, which came into effect on 1 July of this year. The Government has imposed a policy of strong pay reduction and restraint since taking office in March 2011 with the pay of all members of the Government voluntarily reduced from its first day in office. The cumulative effect of the reductions applied is that the net annual salary of the Taoiseach has been reduced by more than 40% in the period since 2009, which is an extraordinarily stark figure. As Taoiseach, Deputy Enda Kenny earns 40% less in take-home pay than his predecessor. Moreover, the pay of the Tánaiste and Ministers has been reduced by more than 35% in the same period.
The pay cuts will of course follow through into a reduction in the pensions that will be payable to members of the present Administration in due course. The system of allowances paid to Members of these Houses was substantially overhauled by the Government in 2011 upon taking office. The rates of allowances payable to specified positions in the Dáil and the Seanad, to chairpersons of Oireachtas committees and to the Houses of the Oireachtas Commission members all have been reduced. In what is another stark figure, the estimated current cost of these allowances is now less than €300,000, compared with a cost in 2008 of €1.436 million, which is a reduction of nearly 80%. These are some facts that are not often trotted out in the public domain when people are commenting on burden-sharing. There are some who believe that Members of these Houses have not taken any pain but these figures underscore exactly the case.
The new Oireachtas expense allowance system began on 1 March 2010, replacing 40 years of legislation with a single parliamentary allowance system to cover the parliamentary and representation costs of Deputies, Senators and Ministers. This major reform was in addition to the reductions imposed on Oireachtas Members' expenses in 2009. I acknowledge these two significant reforms were made by the predecessor Administration. However, it was not transparent enough and I changed the system further from 1 January this year. I reduced the travel and accommodation allowance by an average of 10% with a higher cut of 25% for Dublin Members. The expenses paid under the public representational allowance are now vouched, which is a reform long overdue, and the limit of such expenses has been reduced by an average of 20%. The secretarial allowance scheme also was amended to require evidence of all expenditure. In overall terms, the changes I introduced this year will save a further 11% or €1 million on the overall cost of the expenses system.
This Bill is an important further step in the reform of the supports provided to the parliamentary leaders of qualifying political parties and to those Members of the Oireachtas who are elected as Independents. The Government is determined to ensure that greater transparency and accountability is associated with political funding. Irish people shall be able to discern that the money provided is used in an effective and proper fashion. With this in mind, this Bill also delivers on the Government's commitment to abolish severance payments to certain ministerial and parliamentary offices. Current and future holders of such offices no longer will receive severance payments at the end of their term of office.
In addition to the measures described above to improve efficiency and cost-effectiveness, the Government has been pursuing a wide-ranging reform programme aimed at delivering open, accountable and ethical government underpinned by a transparent, efficient and effective public system to help rebuild trust in government and in the institutions of the State. Many of the commitments in the area of political reform set out in the programme of Government and in the public service reform plan are now being delivered. This ambitious programme of reform consists of a number of significant legislative initiatives which, taken together, comprise a suite of openness, transparency, accountability and public governance measures that will strengthen good government across the system.
Debate adjourned.