SFA Comment on Public Sector Pay Deal

Friday, 29 May 2015

Public Sector Pay Deal must deliver improved service and productivity returns

Fundamental reform of public sector pension provision needed


Commenting on the public sector pay deal "The Landsdowne Road Agreement" concluded this evening, Patricia Callan, SFA Director, stated: “Our public sector numbers and remuneration should be based on what is required to deliver the volume and quality of public services that we require in 2015 and beyond, what the market rate for doing those jobs is currently, and on what the employer (the Government in this case) can afford to pay within its Budget, given that the General Government deficit is running at €4.5bn during 2015. The only way the Government can justify this deal to the small business community is by ensuring that it gets the return for increasing public service pay in this deal through real, measurable, productivity and service delivery improvements."

Callan also commented that "the public service needs also to be challenged on their attitude towards the pension levy. All public sector workers should be expected to contribute a reasonable amount to their pension in return for the fantastic benefit they get from it. The State this year will allocate €1bn more out of the current spending budget than what it takes in from employee contributions to fund its current retirees. Its overall pension liability is conservatively estimated to be in excess of €90bn. The OECD has made a number of significant recommendations around public sector pension reform, which we need to see implemented forthwith. Discussions on this with the trade unions need to start now".

Ends

For queries and interviews, please contact: Patricia Callan, Director, Small Firms Association, e-mail: patricia.callan@sfa.ie, tel: 087 6999345, Twitter: @SFA_Irl
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