State hints there could be 25,000 less on payroll by 2013

THE GOVERNMENT has indicated that there could be up to 25,000 fewer people on the State payroll by the end of 2013.

THE GOVERNMENT has indicated that there could be up to 25,000 fewer people on the State payroll by the end of 2013.

At talks with trade unions yesterday on plans to reduce the public sector pay bill, Government officials forecast that numbers employed in the public service could fall by up to 25,000 if the current recruitment moratorium and other measures aimed at reducing headcount were continued.

However the Government officials signalled that this would be based on a full application of the current moratorium and other employment control measures.

When existing exemptions in relation to recruitment to the education and health sectors, among others, were taken into account, Government officials said that the net reduction could be in the region of 12,000.

READ MORE

A Government spokesman last night said that the figures given to the trade unions at the talks yesterday were indicative.

The Central Statistics Office reported earlier this year that there were 370,400 people employed in the public sector in June 2009 compared with 373,100 a year previously.

The public sector, in the CSO report, was considered to be staff employed in the Civil Service, local authorities, semi-State companies, the Garda, the Defence Forces and in the health and education sectors.

The Government has already signalled to trade unions in the talks that it is willing to explore a three to five-year restructuring of the public service involving job reductions and new productivity and reform measures, as well as unspecified “bridging measures” to be introduced next year as an alternative to pay cuts.

At the talks yesterday the Department of Finance told trade unions that the Government will save about €2.3 billion next year as a result of measures introduced already to curb the public sector pay bill. Department officials said yesterday that the introduction of the pension levy would generate savings of €1.1 billion next year.

They also said that based on existing staffing levels in the public service, the suspension of the payment of the wage increases agreed by the Government under the social partnership deal reached in autumn last year would produce savings of €900 million next year. Officials indicated the moratorium on recruitment would save €300 million in a full year.

The talks resume today.