Allowances in public sector pay cut by 20%

NURSES, gardaí, teachers and other public sector workers will see their allowances slashed by a fifth over the next three years.

Overtime and premium payments will also be reduced by 15% by 2015 under plans announced by Minister for Public Expenditure and Reform, Brendan Howlin.

He said the Croke Park Agreement — which pledges not to cut public pay in return for more efficiencies — must deliver more and has “a long way to travel yet”. In the new year, his department will start a review of allowances and premium payments across the public sector to cut the €1 billion annual bill.

“I expect all public service bodies to address inefficiencies in their systems and achieve additional cost savings, through the introduction of new working arrangements, including new rosters where applicable,” he said.

Allowances will be reduced by 5% next year and again in 2013 followed by a 10% cut in 2014. This will lead to savings of €75 million in 2014, building up to €150m in three years’ time. Overtime will be reduced by 10% in 2012 with savings of €40m, and a further 5% in 2013 saving €60m.

New teachers will face cuts to special allowances paid for qualifications such as a masters or doctorate degrees which cost the Department of Education over €220m a year.

Gardaí face cuts to overtime, travel and subsistence payments. Unions say significant reductions have already been made to allowances and expenses payments.

Mr Howlin said he expects the public pay bill to fall by €400m in 2012 and the number working in the public sector will be cut by 6,000.

The reduction of 12% in staff numbers between 2008 and 2015 “is significant and poses enormous challenges”, he said. “Reform of everything we do is required to deliver adequate services as we reduce numbers.”

Mr Howlin said staff reduction “pressure points” will be identified and selective recruitment will be authorised. Negotiations will also get under way between unions and the Government on an “overhaul” of sick pay arrangements.

Meanwhile, Communications Minister Pat Rabbitte has admitted Government shied away from cutting union pay increments so as not to “invite trouble”.

He told RTÉ's The Frontline the move would have been an outright attack on unions.