The €50 million cost of the Garda pay deal will be divided equally between savings found within the budget of the Department of Justice next year and an additional allocation of €25 million to the department, Minister for Public Expenditure Paschal Donohoe has told his cabinet colleagues.
Presenting the revised estimates for the public service, which are to be published on Thursday, Mr Donohoe said there would be no increase in overall Government spending next year to pay for the Garda pay deal.
The revised estimates update the budget day plans for spending next year. The total increase in expenditure in the revised estimates was expected to be some €40 million, in line with previous years, the Government said.
The Department of Justice will find half the money through savings in its budget, while the rest will be found through the savings identified in a comprehensive spending review of all Government expenditure, which is to begin early next year.
Government battle
The
Labour Court
recommendations for gardaí, which averted an unprecedented strike at the last minute, will cost an estimated €50 million next year. The proposed increased allowances, which will be worth an average of €4,000 to most gardaí next year, take effect on January 1st.
There has been a behind-the-scenes battle in Government over recent weeks over who should foot the bill for the pay increases.
The compromise eventually arrived at was to split the cost between the department and the rest of Government.
It is understood the savings have not been identified yet. The total budget for the Justice group of votes is €2.5 billion, of which €1.5 billion goes to the gardaí.
Pay accounts for €960 million of the Garda budget, before the extra allowances kick in. Garda pensions will cost a further €315 million.
The spending review, which will commence next year, will examine spending budgets across all departments. A spokeswoman for Mr Donohoe said it was “designed to secure the reallocation and reprioritisation of overall expenditure allocations across all departments”.
Such reviews have become a feature of Government since the establishment of the Department of Public Expenditure in 2011.
