asked the Minister for Local Government and Public Health if he is aware that many County Councils and other local bodies, in response to the circular issued recently by his Department urging the necessity for economical local administration, endeavoured to economise in local expenditure by means of cutting down salaries and wages; that these bodies then found that they had no power to reduce the salaries of many members of their staffs, as those officials maintained they were protected in the enjoyment of their salaries by statute; if he will issue a circular to local bodies clearly explaining to them what their powers are in regard to reductions of salaries, and if he is aware that if the demand made by his Department that a rate shall be struck this year which will meet all current expenditure for the year, as well as meet any deficit in payments for the past year due to under-estimation, the local bodies will be unable to collect such a rate owing to the inability of the ratepayers to meet the demands made upon them.
CEISTEANNA—QUESTIONS. ORAL ANSWERS. - REDUCTION OF LOCAL OFFICIALS' SALARIES.
MINISTER FOR LOCAL GOVERNMENT AND PUBLIC HEALTH (Mr. Burke)
I am aware of the fact that considerable discussion has taken place at meetings of local authorties concerning the reduction of salaries. Where definite proposals have been made they have related to all-round reductions irrespective of inevitable anomalies which would arise and with little advertence to the statutory rights of officers. In such cases I have written inviting reconsideration, the letters then continuing as follows:—
"As regards existing permanent officials, the Minister deems it necessary to put before the Council his position under existing legislation. Under the Local Government (Ireland) Act, 1898, the Local Offices and Employments Order, 1923 to 1924, made under the Local Government (Temporary Provisions) Act, 1923, and the Local Government Act, 1925, the Minister is bound to consider the case of each officer separately, having regard to that officer's rights under the various enactments. The Minister would find it difficult, if not impossible, legally to act upon a resolution of a local authority imposing a general reduction in salaries, and he is entitled to definite fact in relation to each officer affected.
"The Council while seeking economies in the matter of the salaries paid to their officials should be careful not to create a claim by the officer to compensation under Section 44 (2) (c) of the Local Government Act, 1925. In the case of officials who have opted out of Part IV. of the Act of 1925, compensation may be claimed under Section 8 of the Local Government (Ireland) Act, 1919."
Salaries generally are at present at a considerably lower percentage of total outlay than in 1914.
I am satisfied that further economies, apart from those appertaining to salaries and wages, can be effected. This has been clearly shown where Commissioners who have replaced local authorities have applied themselves to the prompt collection of rates and the businesslike conduct of local affairs. Some Councils are, no doubt, in a position of embarrassment as regards the ratio the rate necessary for the coming year would bear to the resources of the ratepayer, but such perplexities have mainly arisen from unwise devices in the past whereby known liabilities were temporarily transferred from the ratepayers to the banks, causing additional liabilities in overdraft interest.
Arising out of that question, may I take it from the Minister that the councils have no power to reduce salaries of officials whose appointments have been sanctioned by the Local Government Department, and is the Minister aware that many councils are unable to reduce expenditure because their members have stated that they will not reduce wages unless they are also allowed to reduce salaries?
Officials of local authorities have certain statutory rights and neither the local authorities nor I have the power to interfere with them.
Then they only have power to reduce wages and not reduce salaries?