Funding Public Service Redundancies
Desmond asked whether Central Bank reserves would fund £160 million in public-service redundancy costs and why the amount was not visible in the Estimates. The Taoiseach said redundancies would be voluntary so far as possible, discussions with the Central Bank were confidential, and full provision details would be announced in the budget once uptake was known.
In relation to discussion with financial institutions, has the Taoiseach sought the approval of the Central Bank for the use of reserved funds of approximately £160 million to fund the enforced redundancy of 16,000 public servants?
Comment on this
First of all, there will be no enforced redundancies. Part of the programme stipulates that redundancies in the public service should be on a voluntary basis in so far as possible, and if there is to be any change in that it will be negotiated with the social partners.
Comment on this
Second, as the Deputy having been a Member of a former Government would fully understand, any discussions between the Government or the Minister for Finance and the Central Bank would, of necessity, be confidential. But I do not think the Deputy need be particularly worried about the rumour.
Comment on this
Confidentiality aside, would the Taoiseach confirm, as I have not received a reply to my question, that on page V of the Book of Estimates the subsequent arrangements referred to deal with that matter and that it is extraordinary that £160 million for pay and pensions is not reflected in any of the Votes as published yesterday and that this in fact is probably the biggest stroke of all——
Comment on this
It is not for nothing that the Deputy is known as one of the most mischievous men in Irish politics.
Comment on this
If I were to go around denying all the fictitious accusations the Deputy makes, I would have a full time occupation. All the provisions for pay and pensions are included in the Book of Estimates.
Comment on this
The Minister for Finance has already indicated that the full information in regard to the provisions for redundancy will be announced in the budget. As a matter of fact, it would be impossible for us to do otherwise at the moment as we do not know the extent to which voluntary redundancies will be taken up.