Oireachtas

People Before Profit seeks repeal of emergency pay cuts

Party accuses Government of ‘blackmailing’ workers by not repealing Fempi legislation

People Before Profit is to propose a motion to abolish the Financial Emergency Measures in the Public Interest legislation (FEMPI), which was an austerity measure brought into law in 2009. Photograph: Dave Meehan/The Irish Times
People Before Profit is to propose a motion to abolish the Financial Emergency Measures in the Public Interest legislation (FEMPI), which was an austerity measure brought into law in 2009. Photograph: Dave Meehan/The Irish Times
Ciarán D'Arcy
Wed Jun 01 2016 - 15:29

People Before Profit has accused the Government of “blackmailing” public sector workers by not repealing financial emergency legislation enacted during the economic crisis.

The Financial Emergency Measures in the Public Interest (Fempi) Act was first introduced by the Fianna Fáil-Greens government in 2009 and an amended version of the legislation was used by the subsequent Fine Gael-Labour coalition in 2013 in conjunction with the Haddington Road Agreement.

The measures included public sector pay cuts and a 7 per cent pension levy, and were designed to cut State spending as part of a plan to tackle huge budget deficits that emerged during the economic crash.

Labour's former Minister for Public Expenditure and Reform Brendan Howlin had promised a gradual winding down of Fempi legislation over coming years in light of the improved fiscal environment.

READ MORE

Speaking last year, Mr Howlin said the pension levy alone raised €900 million annually for the State’s finances.

On Wednesday, People Before Profit TD Bríd Smith submitted a motion to the Dáil demanding an immediate repeal of Fempi, and she was supported by party colleagues Richard Boyd-Barrett and Gino Kenny, along with a number of Anti-Austerity Alliance and Independent deputies.

“One of the hallmarks of repressive regimes and even dictatorships is to use emergency legislation to deny people basic rights,” People Before Profit leader Richard Boyd-Barrett told a press conference on Wednesday.

“The establishment in this country - both the Fianna Fáil-Green government and the Fine Gael-Labour government- were lying to the people when they said this was a sort of unfortunate necessity,” he added, accusing the new Government of “extreme hypocrisy”.

“We think there is no justification whatsoever for retaining these emergency powers for the use of blackmail against workers who voted democratically to abide by a previous agreement which allowed this stuff to happen but was supposed to be time-sensitive,” he said.

Asked if immediate removal of Fempi would impose a substantial burden on the State’s finances, Ms Smith admitted that “of course there’s going to be a cost” but said this would eventually be offset by reinvestment of additional public sector wages in the local economy.

Ms Smith said she does not expect to receive support from either Fine Gael or Independent TDs in Government but hopes to gain traction among like-minded members of the Opposition.