Departmental Estimates and public-sector savings
Mary Lou McDonald challenges bringing forward Estimates containing disputed Croke Park savings, while the Taoiseach says the Department’s Estimate must pass so public servants can be paid and fiscal savings can proceed.
I wish the Taoiseach and his terrible twin in the Labour Party a happy birthday.
Since yesterday the Minister for Public Expenditure and Reform, Deputy Brendan Howlin, sought to ram Estimates for his Department through the committee. The Taoiseach has stated correctly the Estimates are apportioned Department by Department. Hardwired into each of them are the Croke Park agreement cuts. The Taoiseach has asked the Labour Relations Commission to re-engage with the trade unions to find some accommodation. Despite this, he will bring the same Estimates in front of the Dáil this morning, snubbing his nose at the decision of workers in the civil and public service. He congratulates himself and contrasts his approach with that of the last Government which acted unilaterally on pay cuts. I suppose the distinction is really one of choreography because, whereas the current Government will go through the motions of engaging in consultation and pretending to have a listening ear, it has indicated that, like Fianna Fáil, it is ultimately prepared to act unilaterally. The Taoiseach is playing games with public sector workers. I am not talking about those at the top such as himself, the Tánaiste and their special advisers but about workers on the front line, including gardaí, nurses, teachers and emergency personnel.
The Taoiseach continues his sabre rattling this morning and draws a parallel with the private sector. I suggest that in the private sector the first one to get the chop would be the Minister for Public Expenditure and Reform, Deputy Brendan Howlin, who would very smartly be followed by the rest of the members of the Government. To add insult to injury, as the Taoiseach throws shapes at public sector workers, he protects the pay of Richie Boucher. If ever somebody was correctly named, it is the bould Richie.
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He is on a salary – sorry, a remuneration package – of €843,000. That is €70,000 per month or over €16,000 per week.
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Richie takes home in a fortnight what an average nurse earns in an entire year. How does the Taoiseach look public and civil servants in the eye, despite telling us that many of them are struggling just to get by? How does he look them in the eye when his approach is so heavy-handed with them? He demands that nurses, gardaí and emergency personnel take cuts to their wages and accept a decrease in the standard of their working lives, while at the same time being so gentle and generous with Richie Boucher.
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I am not sure where the Deputy’s question was. Let me deal with her assertion on the Estimates.
It is necessary that the work of government continue and that the Estimates being produced are clear. It may well be that in the discussions that will take place at committee suggested changes or adjustments will be made to the Estimates set out. What is before the Dáil is one Estimate for the Department of Public Expenditure and Reform. It is necessary that this Estimate be passed if public sector workers are to be paid. I am sure even Deputy Mary Lou McDonald, with her ability to turn this way and that-----
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-----recognises that workers in the public service who perform their duties are entitled to be paid. The Deputy walked out of a meeting yesterday at which this could have been arranged. The Government has set out in its fiscal plan the savings required to be achieved this year. These savings, as set out in the Revised Estimates for the Department of Public Expenditure and Reform, are apportioned across all Departments. That is the reason the Estimate is before the House. This is normal procedure in the workings of government. The discussions and negotiations that took place were the most extensive, comprehensive, open and - I dare say - truthful expression of the facts of financial life in this country. From a Government perspective, the proposals on the table as put forward by the Minister through the Labour Relations Commission are fair and equitable. The core salaries of 87% of public sector workers earning below €65,000 per annum are not touched. It is important that the Deputy understand we are borrowing more than €1 billion every month to pay salaries in the public sector.
The Deputy mentioned individuals in the banks. I remind her that the contract for the bank in question was negotiated by a Fianna Fáil-led Government and that this Administration on taking office put in place a cap on bankers' salaries, which nobody has since breached. I further remind her that the Government, as part of its programme for Government, asked that an analysis be carried out of bankers' pay. This analysis was conducted by Mercer and the findings were reported to the Government. The Government, in its engagement with the banks, recommended a reduction in banks' pay and pension scales of between 6% and 10%. The Minister for Finance expects that this recommendation from the Government will be responded to by the banks in the next two weeks. My understanding is that it will include a substantial contribution from the leadership of the banks on pay and pensions.