Public service pay and pensions report
Deputy Brendan Howlin challenged the Government's position on a possible extension of the Lansdowne Road agreement and the public service pensions issue, amid reports of major losses for future retirees. The Taoiseach said the Government was awaiting the Public Service Pay Commission report, had not seen any draft assumptions, and would publish and debate the report after Cabinet consideration.
Last Friday, the Minister for Public Expenditure and Reform, Deputy Paschal Donohoe, when speaking on "Morning Ireland", indicated that he intends to seek to negotiate a further extension to the Lansdowne Road agreement. While noting that these negotiations would be challenging, he made it clear that he would not comment on possible negotiating positions until after the report of the Public Service Pay Commission. He said that doing so would make the existence of the commission pointless. The Taoiseach will recall that I argued that these discussions should have begun sooner. I believe some of the industrial unrest we have witnessed in recent months could have been prevented had that been the case. However, at least there appeared to be some logic to the position put forward last Friday by the Minister, Deputy Donohoe.
Today we see a mockery of that approach when we read in the Irish Independent about the Government's plan to attack the so-called gold plated pensions in the public service. Clearly, that newspaper has been briefed on the Government's negotiating strategy, and that strategy has been established without waiting for the Public Service Pay Commission to report. We must now question whether that body is pointless, to use the Minister's word. We have legislated for career average pensions for all new entrants to the public sector. That measure will lead to a significant saving, estimated at 35%, in the future cost of pensions. It is also a reasonable measure, not least because those who are affected are aware of it and can plan for it from the moment they begin their careers. The strategy leaked today is a very different type of approach. The introduction of a career average pension for existing public servants would particularly hit those who are now approaching retirement. People approaching retirement will have considered what pension they will receive, will have planned for it for 40 years and will have planned their retirement on that basis. A dramatic cut to their pensions just before they retire would leave those plans in tatters.
I understand the desire in Fine Gael to be as tough as possible on the public sector - in many ways it is a dog whistle to the right wing voters they are seeking to court - but that is wrong with regard to public sector pensions. The average public sector pension is approximately €20,000. There is not much gold plating involved in that. The Taoiseach will also be aware of the clear legal advice of successive attorneys general that pensions are preserved property rights under the Constitution. What is the Government's exact position on the pension rights of public servants? Why was a position that cannot be constitutionally achieved briefed to the Irish Independent?
Comment on this
The Deputy asked about the Government's position on this matter. First, the Fine Gael Party has always valued the public service and the work that public servants do. I have highlighted that in the recent past in respect of negotiations with our European colleagues and previously during the EU Presidency, when we highlighted at all times the value, effort and unstinting commitment and dedication of public servants. The Government's position on this matter is that we should first wait to receive the report of the Public Service Pay Commission. The Minister has not received that and he has not made any comment, good, bad or indifferent, about it. Reports of what it contains are writings that I and no member of the Government have seen.
Comment on this
When the report is presented to the Minister he will bring it to the Cabinet, as is his responsibility. It will be published, discussed and debated. The only comment I wish to make in respect of the public service pensions issue the Deputy mentioned is that in December last year the Minister for Public Expenditure and Reform stated: "The value of public service pensions has clearly increased in recent years and this is why the work of the Public Service Pay Commission is going to be so important".
That is the position. We have not received the report. It is due to be received shortly. When it is received, the Minister will bring it to Cabinet, the Government will consider it, it will be published and it will be debated in the House.
Comment on this
Somebody briefed the Irish Independent with specifics. Numbers were adduced in the article that the average public servant would lose €100,000 over the duration of his or her pension, and that was Government policy. Would the Taoiseach affirm or reject whether that is the case? Many public servants, in particular those who are approaching retirement in the coming years, are desperately anxious.
The Taoiseach will recall that when reductions to pay were made there was a fear that people would advance their retirement. We wondered what would happen with nurses, gardaí and others. In order to give confidence to people that the pensions into which they have paid for 25, 30, 35, 40 years or more will be preserved and paid as contracted by the State, will the Taoiseach confirm the accuracy of the newspaper article or disown it?
Comment on this
I can confirm that the Government has not been presented with any initial draft assumptions on the report. I can confirm to the Deputy that when the report is received-----
Comment on this
That is nothing to do with the report.
Comment on this
-----by the Minister, he will bring it to Cabinet, as the Deputy did with various other reports. It will be discussed by the Cabinet, decisions will be made and the report will be published and debated.
I repeat that the Deputy's allegation of a dog whistle in respect of public service and public servants is false. This party, as a political party, and the Government, as a Government, values the work of public servants and their commitment and dedication to serving our country in many areas.
Comment on this
The article is an article in a newspaper. The Government and Minister have neither seen nor received the report. The Minister will receive it in due course and bring it to Cabinet where it will be debated and a decision will be made. It will be published and debated in the House. I do not deal in conjecture, as the Deputy knows.