Special public service pay increases
McDowell asked about the cost of special pay increases amid planned public service job cuts. The Minister put this year’s figure at £40 million, including £12 million for the Defence Forces, and said he had invited the ICTU to discuss future awards.
Arising from the Minister's remarks about controlling costs in the public service and bearing in mind the figures he gave in his budget speech to this House last week, would he agree that he faces special pay increases of £150 million this year to be negotiated? He is planning to get rid of 12,000 public servants in 1988 and 1989. Special pay increases next year will cost——
Comment on this
The figure for special increases this year is £40 million, of which £12 million was already allocated to the Defence Forces. The balance represents the claims that have been adjudicated on so far. The £150 million does not accrue in 1989. As I indicated in my Budget Statement, I have invited the Irish Congress of Trade Unions, under the ambit of the Programme for National Recovery, to come in and discuss with us the whole question of special pay awards to ensure that the programme for economic recovery or the recovery that is taking place in the economy is in no way jeopardised or endangered by payment of special pay increases.