Dáil Éireann Debate, Thursday - 8 May 2014
86. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform his views on whether the targeted savings under the Haddington Road agreement were achieved in 2013; and if he will make a statement on the matter. [20671/14]
Amharc ar fhreagraThe Public Service Exchequer Pay Bill has been reduced by 22%, from €17.5 billion gross in 2009 to an estimated €13.6 billion net by the end of 2014. In 2013, the net reduction was €210 million. This reduction was enabled, in part, by the implementation of various measures under the Haddington Road Agreement which helped to ensure that spending remained in line with profile and resulted in Ireland delivering on our fiscal target for 2013.
I am satisfied that approximately €300 million in savings, arising from the implementation of various measures under the Agreement, was incorporated into the estimates for 2013, comprising of approximately €250 million in Exchequer pay savings and a further €46 million in savings arising from pensions and a number of other non-Exchequer sources (e.g. Local Authorities, Central Bank etc).
While the savings allocated under the Agreement in 2013 helped to bring the Public Service Pay Bill to a more sustainable level, it also allowed the scope to recruit additional staff to frontline services, particularly in the Education Sector and the Health Sector. This is a reform dividend that will help sustain the Public Service Reform agenda by re-investing some of the efficiency savings we are delivering into improved services.
In addition, it is worth noting that a further €465 million in savings arising from the implementation of measures under the Agreement was incorporated into the budgetary arithmetic for 2014, bringing the total amount of savings allocated under the Agreement to €762 million, or over 75% of the targeted savings under the Agreement. The focus is now on the comprehensive delivery of the Agreement and that task falls to Public Service Management and each Department's Accounting Officer who are responsible for the delivery the required level of savings to ensure that their respective pay bill targets are met.
