Statement by the Minister for Public Expenditure and Reform, Brendan Howlin T.D, on the outcome of discussions between the Government and the Public Service Unions

Issued 29 May 2015

I welcome the agreement that has been arrived at today, 29 May 2015, and would like to thank everybody who has been involved in the process.

 I believe that it strikes the right balance between the legitimate aspirations of public servants for pay recovery and sustaining our improving public finances. 

 It will secure a peaceful industrial relations environment until September 2018.

 It reinforces the ongoing commitment of public servants to the wider reform agenda in the public service.

 It begins the process of unwinding the financial emergency measures in a prudent and sustainable fashion thereby reducing the risk to the sustainability of the public finances.

It targets the bulk of available discretionary resources at lower and middle income public servants.

It meets the existing commitments made under the Haddington Road Agreement (HRA).

It is only made possible by the improvement in our economy delivered by this Government and the public service reform which has been delivered by public servants in recent years. 

Separate from this Agreement with the Public Sector Unions, it is my intention to fulfil my commitment to begin the orderly restoration of public sector pension reductions made in recent years.

 

Note to Editors:

 

Cost of the Agreement

As set out in the Formal Text, this agreement covers the period to September 2018.  The agreement has additional costs of €566 million over a 3 year period as set out below. 

The costs of the commitments already made by Government in the Public Service Stability Agreement (the Haddington Road Agreement) are €278 million.

 

 

2016

2017

2018

Cumulative

HRA Commitments

 €m

  €m

  €m

 

€m

Supervision and Substitution

18

53

35

 

106

HRA Pay Restoration

0

75

97

 

172

Already Committed Cost from HRA

18

128

132

 

 

278

 

 

 

 

 

Cost of New Agreement

249

162

155

 

566

 

 

 

 

 

Total Cost

267

290

287

844

 

Impacts on Income Groups of this Agreement

The effect on various income groups of this Agreement are set below. 

 

2016

 

%

30,000

60,000

100,000

1,003

   733

   733

 

3.3%

1.2%

0.7%

2017

 

 

 

30,000

60,000

100,000

  567

  567

  267

 

1.9%

0.9%

0.2%

2018

 

30,000

60,000

100,000

 

 

  600

  595

  0

 

 

 

2%

1.0%

0%

 

Cumulative Effect  2016 – 2018

 

 

30,000

60,000

100,000

2,170

1,895

1,000

 

7.2%

3.2%

1%

 

Claire Martinez

Press Officer

Department of Public Expenditure and Reform

Phone: (00 353 1) 6045306

Mobile: (00 353) 861839961

 

Check out our website @ www.per.gov.ie

 

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