Budget 2017: No money to accelerate public service pay increases

The Government, in its public service pay provision in the budget, has strongly reaffirmed its commitment to the Lansdowne Road agreement.

There is no money allocated for additional rises next year over and above those allowed under the deal, despite growing calls from public service groups for an acceleration of wage restoration.

In his budget speech the Minister for Public Expenditure and Reform Paschal Donohoe announced an allocation of an additional €290 million to meet public service pay costs next year.

However this is keeping with the amount required in 2017 to implement the measures set out in the Lansdowne Road accord which will see public service personnel earning less than €65,000 receive a payment of €1,000 next September.

For those earning above that threshold the deal provides for the phased restoration of the pay cuts imposed in 2013 under the previous Haddington Road agreement to begin next Spring.

There is no commitment in the 2017 budget for any increases over those already set out in the Lansdowne Road agreement.

Pressure from unions

However the Lansdowne Road edifice is already facing significant pressure with various public service unions calling for the existing timetable for pay restoration to be advanced, particularly in the light of both a growing economy and the larger-than-anticipated increases awarded to staff in Luas and Dublin Bus in recent months .

Already the Government is facing potential industrial unrest from gardaí and second-level teachers.

In his speech the Minister acknowledged “the demands that exists in the area of public pay”.

However he said that “public pay restoration must be managed in a way that is affordable for all: for those working in our public services and those who depend on these services and depend on future investment in more frontline staff and resources”.

Pay Commission

The Minister again announced the establishment of a Public Service Pay Commission.

He said the commission would report by the middle of next year and advise on how financial emergency legislation, which underpinned the public service pay cuts since 2009, would be unwound.

He said the report of the commission would facilitate talks between the Government, public-sector unions and other stakeholders on the successor to the Lansdowne Road agreement which is due to expire in 2018.