Public Sector Pensions
Finance and Personnel
3:15 pm
Mickey Brady (Sinn Féin)
7. asked the Minister of Finance and Personnel for an update on discussions with trade unions on public sector pension contributions. (AQO 1828/11-15)
Sammy Wilson (DUP)
As Minister of Finance and Personnel, my area of responsibility is the principal Civil Service pension scheme and, therefore, I can only comment and update on trade union discussions relevant to that scheme.
The consultation on the proposed increases to employee contribution rates for 2012-13 was launched in October 2011, and that was issued directly to the main Civil Service unions. The Department of Finance and Personnel’s response document was issued again to the Civil Service trade unions on 6 February, and they were provided with copies of the draft legislation before it was laid. Further increases in member contributions will take effect in April 2013 and April 2014. The structure of those increases is subject to further consultation and discussions with trade unions.
Mickey Brady (Sinn Féin)
I thank the Minister for his answer. Does he recognise the importance of proper and meaningful dialogue with the unions on the issue to ensuring a better local understanding of the position imposed on the Executive by the Westminster coalition?
Sammy Wilson (DUP)
I do. I, like many other Assembly Members, have had representations made to me in the past couple of weeks as increased pension contributions have started to show through on people’s payslips. I fully understand the difficulties that the increased pension contributions are causing people who are in employment at the moment, especially where wages are frozen. Of course there needs to be consultation. However, I caution the Member and indicate that our room for manoeuvre on this is fairly limited. Had we not introduced even the increase that went through in April of this year, we would have had to find £140 million from the spend on public services to subsidise those pensions. So, while there will be consultation — I intend there to be full consultation — nevertheless, I must add that warning to any answer that I give. We have very, very limited room for manoeuvre in this.
Can the Minister tell the Assembly whether any increases to the Civil Service compensation scheme will be subject to the approval of the Assembly?
Sammy Wilson (DUP)
There are two ways in which this can happen. The legislation is going through Westminster, and Northern Ireland changes could be linked onto that if a legislative consent motion were accepted by the Assembly, or we could have a full debate on it in the Assembly. What course we take on it is up to the Executive. The one thing that I would say to the Member is that we can have all the discussions that we want in the Assembly, but our room for manoeuvre is very limited.
Even the financial wizardry of the SDLP, such as it is, cannot save us from the consequences of the very costly deviations from any scheme that is proposed on a UK-wide basis.
