Taoiseach wants more Croke Park savings

TAOISEACH ENDA Kenny has given his Ministers a week to outline further savings achievable under the Croke Park agreement in what was described as a “reinvigoration” of the process but not a review.

The Cabinet yesterday agreed “further work was required” on Minister for Public Expenditure Brendan Howlin’s controversial memo containing limited proposals to reform 800 allowance payments for about 300,000 staff in the public service.

A Government spokesman said Mr Kenny’s instruction on the Croke Park deal was aimed at accelerating the implementation process and the savings would be achieved within the context of the agreement as it currently exists.

“The Taoiseach directed that every Minister and their secretaries general present to Minister Howlin by next Wednesday their best assessment of what can be achieved in the immediate to short term to maximise savings,” he said. “Progress has been made, there’s general agreement on that. Over the period of time you have to reinvigorate the process at every turn . . . What’s the best assessment of the separate secretaries general and Ministers as to what can be further achieved?” He said the “pressure on people to continue to achieve” had to be renewed in such a process. He insisted a review of the agreement was not taking place. “It’s part of a renewal, reinvigoration of the process.”

Earlier this week Mr Kenny said the Government was determined to implement the agreement in full, ending speculation that it might be renegotiated. Mr Howlin’s memo outlining the proposed reform of public sector allowances was discussed by Cabinet but no decision was taken. It will come back to Cabinet. The Government spokesman said “it was agreed” that further work was required.

The Irish Times reported last week that under the Minister’s plans the reforms to allowances would mainly be confined to new entrants. Reform of the 800 allowances paid to staff in the public service was earmarked as a major initiative by Mr Howlin this year. He had hoped to generate savings of about €75 million on allowances. About €1.5 billion is currently paid out in allowances to staff in the public service annually. However, the review , which was originally to have been completed last February, is months behind schedule.