Written Answers. - Semi-State Remuneration Guidelines.

Desmond J. O'Malley

Question:

46 Mr. O'Malley asked the Minister for Finance the guidelines that exist in relation to remunerations, expenses and other payments to executives in semi-State bodies; whether he has satisfied himself that his Department has put in place adequate controls and procedures in this regard; and if he will make a statement on the matter. [8582/96]

The general position which applies, under statute, in relation to the remuneration of chief executives of State bodies is that it is determined by the relevant board with the approval of the Minister directly concerned and the consent of the Minister for Finance.

With a few approved exceptions, the authorised rates of remuneration are those recommended by the Review Body on Higher Remuneration in the Public Sector. These rates are recommended by the review body on the general basis that they cover salary and all other benefits, apart from superannuation and expenses arrangements approximating to those applying in the Civil Service, and that if additional benefits are provided the recommended rate should be reduced by the value of those benefits. That is the basis on which the recommended rates have been accepted by the Government and approved for implementation.

Implementation of the approved arrangements is a matter for each chairperson and each board. In guidelines for State bodies issued by my Department in March 1992, chairpersons were reminded that they are required to implement Government policy in relation to the remuneration of chief executives and that the arrangements made cover total remuneration. The guidelines also require each chairperson, when submitting the annual report and accounts to the relevant Minister, to submit a report which, among other things, affirms that the Government guidelines on the pay of chief executives are being complied with.
I am satisfied that these procedures, if properly applied, would be adequate. I have, however, written to Ministers asking them to carry out an examination to ensure that the arrangements which actually apply at present in relation to the chief executives of State bodies for which they are responsible, are in line with these procedures.