Minsters told public service pay cuts a ‘once-off’ measure

The Department of Finance told ministers in 2009 they would have to tell public servants cuts to their core pay and allowances would be "once -off measures" which would not be repeated.

Ministers were also advised by the department the controversial cuts, which were being examined as part of the 2010 budget, would undoubtedly lead to industrial action.

The cabinet was also told by the department the numbers employed in the public service had to be reduced, but that it would take years to realise full savings unless compulsory redundancies were introduced.

The 2010 budget strategy memorandum, drawn up by the then minister for finance Brian Lenihan in October 2009, was released on Monday by the Department of the Taoiseach under revised Freedom of Information legislation.

This allows previously confidential government papers to be made available after five years.

The then Fianna Fáil-Green Party adminstration ultimately decided to introduce financial emergency legislation to cut public service pay in the 2010 budget.

Core pay

The amount varied by salary level but averaged about 6.5 per cent.

Further cuts to some allowances were introduced by the current Government in 2012 and to core pay for those earning more than €65,000, under the Haddington Road agreement in 2013.

The 2010 memo says Mr Lenihan believed pay and social welfare reductions “are only likely to be acceptable to the extent that they are put forward as once-off budgetary corrections, reflecting price developments and budgetary realities and if groups affected can be assured that government will not seek to go further in the planned 2011 and 2012 corrections – bearing in mind that public service pay rates have already been affected by the pension levy”.

However, the memo also warned it might not be possible to secure acceptance for across-the-board cuts in public expenditure, particularly social welfare savings, on the scale envisaged “unless substantial progress is made in reducing the cost of delivering public services”.

Ministers were told there was “no possibility” of securing any form of agreement with trade unions on public service pay reductions.

“Indeed, the unions are seeking assurances that pay levels will not be cut as a pre-condition for any meaningful commitments on issues of work flexibility etc.”

The cabinet was told by the Department of Finance the imposition of pay cuts would undoubtedly lead to industrial action, although it was not clear whether there would be across-the-board strikes or selective action in sensitive areas.