Dáil Éireann debate -
Thursday, 13 Mar 1997

Vol. 476 No. 4

Written Answers. - Merit Pay.

Edward Nealon

Question:

40 Mr. Nealon asked the Minister for Finance the grades in the civil service to which merit pay applies; the criteria used in each case; the current proposals, if any, there are to extend merit pay; if so, the grades to which such pay will be extended; the amount paid out in merit pay in 1996; the number of cases involved; and if he will make a statement on the matter. [7186/97]

Minister for Finance (Mr. Quinn)

The only formalised scheme of merit pay which applies in the civil service is the performance-related bonus scheme for assistant secretaries, and some deparmental and professional post-holders at that level, which was introduced with effect from 1 May 1995. This scheme and the criteria under which it operates were recommended by the Review Body on Higher Remuneration in the Public Sector in Report No. 35.

Essentially, bonus payments are made by reference to assessment of performance against objectives agreed in advance with the Secretary of the Department for the bonus year concerned.

A total of £220,023 was paid to 88 individuals, in respect of 1994-95, under the performance-related bonus scheme for assistant secretaries. Details relating to the succeeding twelve month period are not available in my Department at this time.

The Government has recently published Report No. 37 of the review body and has decided to accept its recommendations in principle. One of the recommendations is that my Department should examine the feasibility of extending performance-related bonus arrangements to other grades at assistant secretary level and to grades at deputy secretary level. While the Government has decided that the question of implementation of the salary rates which would flow from the recommendations contained in Report No. 37 will be considered at a later date in the context of Partnership 2000, it has decided that, in the meantime, some preliminary arrangements which would arise from new or improved approaches recommended for certain areas by the review body will be addressed. These will include arrangements for the further development or performance-related pay in the Civil Service, as recommended.

I should mention that under the programme of change, Delivering Better Government, a system of performance management is currently being designed and developed in order to underpin the achievement of objectives set out in the day-to day work programmes for staff at all levels in each Department and thereby to promote a high performance, results-oriented civil service. Recognition and reward for good performance, and a constructive approach to the management of underperformance, are essential features of an effective performance management process. Rewards, including performance-related pay, will be addressed, therefore, as an integral part of the overall design of the system. A firm of consultants has been engaged to assist with the design and development of the system.

I should also mention an arrangement introduced a few years ago whereby heads of Departments and offices have a very limited discretion, within their administrative budgets, to reward exceptional performance by persons in grades below assistant secretary level by means ofex gratia payments or other awards. The operation of these arrangements and the number and amounts of awards are matters left entirely to the discretion of the heads of Departments and offices.