THE Government has set aside £249 million in the Budget to meet the cost of public sector productivity deals this year. This will mean an increase of 5.5 per cent in the Exchequer's bill for pay and pensions, bringing the total to an estimated £4,813 million in 1996.
It may be billions, but it is unlikely to impress the public sector unions, or head off the threat of industrial action by groups like nurses or clerical workers in the Civil Service.
Last night the Civil and Public Service Union described the pay provisions and tax cuts as disappointing. The widening of the tax band, according to the CPSU deputy general secretary Mr Blair Horan, "will put only 86p a week into the pay packet of a single, lower paid clerical assistant."
Announcing the productivity allocation in his Budget speech the Minister for Finance Mr Quinn, made it clear that all negotiations must "adhere to the cost parameters underlying the pay agreement and that they have regard to the need for flexibility change and improvements in efficiency and effectiveness."
Referring to the public sector embargo, he said "The need to contain overall pay costs is also being tackled through a rigorous approach to the creation of new posts within the Civil Service and certain restrictions on the filling of vacancies arising in 1996 as part of a wider strategy to stem the growth in numbers employed in the public service."
He also said that the Coordinating Group of Secretaries of Government Departments would be reporting soon on how to proceed with the Strategic Management Initiative.
"The SMI process has the full support of the Government and the programme is designed to empower and energise the public service, devolve decision making and make the entire process more transparent and accountable to the citizen as customer and client.
"There will be full consultation with the staff associations involved and with other interested parties as the process evolves."