| 15.2°C Belfast

'1bn euro' public service cuts

Close

Minister Brendan Howlin said the Croke Park Agreement was making an important contribution to ecoomic recovery

Minister Brendan Howlin said the Croke Park Agreement was making an important contribution to ecoomic recovery

Minister Brendan Howlin said the Croke Park Agreement was making an important contribution to ecoomic recovery

The State shaved almost a billion euro off its public service bill last year through cuts, a new report has shown.

Staff reductions and redeployment saved 650 million euro in pay in the second year of the Croke Park Agreement between Government and unions, with 370 million euro saved in administration efficiencies.

A total 1.5 billion euro has been knocked off the Government's Exchequer bill over the last two years.

Public expenditure minister Brendan Howlin said the report confirmed the Croke Park Agreement was making an important contribution to Ireland's economic recovery.

"That said, we cannot lose sight of the fact that we continue to face very significant challenges," he said.

"We still have a way to travel in terms of restoring order to the public finances."

He pointed out that the Government was still operating in "a very difficult and uncertain" economic environment.

The report, by the Implementation Body for the Public Service Agreement, said the savings were evidence of the public service doing more with less.

In the two years since the deal was struck between the Government, public servants and unions, thousands of workers had been redeployed.

There was also a mass exodus at the start of the year when more than 7,500 public servants accepted a deal to retire early in a bid to avail of pensions based on pre-pay cut salaries.

PA