AVERAGE earnings in the public sector will rise faster than the private sector again this year, according to Budget documents.
In the Economic Background to the Budget, the Department of Finance estimates that average earnings in the Public Service are expected to rise by 6 per cent in 1997.
The equivalent increases in the non-agricultural sector are expected to rise by 4.5 per cent.
Mr Quinn stressed in his speech that improvements in the level of service offered by those in the Public Service would be expected in return.
He said his hands were tied by the pay agreement which forms part of the new national agreement, Partnership 2000.
The agreement provided for increases totalling 9.25 per cent over 39 months. In addition, he said, the local level negotiation provision of 2 per cent is linked to the "achievement of real verifiable progress in the Public Service programme Delivering Better Government."
As a result, the Exchequer's pay and pensions bill will rise by around £265 million, or by around 5.5 per cent.
Mr Quinn said this was mainly due to the public sector pay increases under the old national agreement, the PCW. These, together with the cost of service improvements, will bring the total pay and pensions bill to approximately £5.15 billion.
The increases came after a standoff by Mr Quinn on the level of public sector pay. Until very recently he insisted there would be no additional money for public servants this year and no extra local bargaining. But he found money for both at the end of the day.