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Dáil debates plans for pay restoration

The measure imposed by FEMPI acts contributed to savings of €2.2bn
The measure imposed by FEMPI acts contributed to savings of €2.2bn

Fresh Government legislation that would see public service pay and pension cuts restored is being debated in the Dáil this week.

The Dáil debate on the Financial Emergency Measures in the Public Interest (FEMPI) Bill 2015 commenced tonight.

Speaking at the start of the debate, Minister for Public Expenditure and Reform Brendan Howlin said Ireland is among the fastest growing economies in Europe but needs to be cautious with the recovery.

"This bill is not about giving away in an irresponsible manner but it is about giving money back to workers in the public service," he said.

The measure imposed by FEMPI acts contributed to savings of €2.2bn. He said that public servants have undergone two pay cuts and in the case of higher earners, this was three cuts.

He added: "It is only right that our nurses, teachers and gardaí see modest increases in their take-home pay."

He stressed the importance of an: "Orderly wind down rather than risking a successful legal shona led is the apportioned way to proceed."

"This is the first step towards restoring the pay and pensions of public servants being restored with the lowest earners befitting most," Mr Howlin said.

"From the first of January next public servants earning up to €24,000 will have their salary increased by 2.5%; while those earning between €24,000 and €31,000 will receive a 1% increase.

"On the first of September 2017 the salary of all public servants earning less than €65,000 will be increased by €1,000."

"As well as these measures, this section also reverses the additional pay cuts for the higher paid from 2013, as follows: Where their annual salary is between €65,000 and €110,000, the amount by which it was reduced will be restored in two halves - first on the first of April 2017 and then on the first of January 2018.

"This restoration was part of the Haddington Road Agreement and the Government is happy to follow through on that commitment.

"For public servants with an annual salary of over €110,000, the amount by which it was reduced will be restored in three equal parts - on the first of April 2017, 2018 and 2019 respectively.

"This slower restoration of the cut in pay for this group is proportionate and fair."

Concluding his speech, Mr Howlin said: "This is a time for cool heads and careful calculations, not red-hot rhetoric or bluster.

"Hence this Government has provided in this Bill a measured and carefully calibrated response, that recognises - but does not compromise - the significant improvement and recovery from the fiscal emergency it inherited and on which the previous FEMPI legislation is predicated; and which provides a fair and reasonable return to our nurses, doctors, and Gardaí, all of whom were required to make considerable sacrifices during that emergency. This is restoration done responsibly."

Fianna Fáil's Sean Fleming said that his party is supporting the bill.

He said there is no longer a financial emergency in Ireland.

He said he was concerned about the alliance of retired public servants. They were denied access to Croke Park and Haddington Road talks.

He said that there should be some mechanism to allow them into talks as it did affect their situation.

He said that there are TDs who believe that not only should the FEMPI cuts be reversed, that people should get everything back at once.

However, he said that he does support the restoration in an orderly constructive manner.

Sinn Féin's Mary Lou McDonald said that listening to Mr Fleming she nearly mistook him for a Government TD as he declared the emergency is over.

Addressing the issue of excessive pay she said that Sinn Féin has insisted on pay moderation and a recognition that there is still a small number of people in the system that were being overpaid.

The Dáil has adjourned until tomorrow morning.