Dáil Éireann Debate, Thursday - 14 July 2011
» ...
»
Public Sector Salaries
1 Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the numbers, categories and positions of staff and personnel in the civil and wider public service who are above the salary cap figure and to whom the salary cap does not apply. [20285/11]
View answerThe Government has agreed with my proposal for the introduction of a general pay ceiling of €200,000 for future appointments to higher positions across the public service and a general pay ceiling of €250,000 for future appointments to CEO posts within commercial State bodies. I proposed this pay ceiling in the light of the decision taken by the Government on its first day in office to reduce the salary of the Taoiseach to €200,000 and apply a pro rata reduction to other members of the Government.
Arrangements are being made on an administrative basis to implement the pay ceiling for future appointments where that is appropriate, for example, within the Civil Service and for the heads of the four universities. Amending the salary rate for future appointments to certain statutory offices such as the Presidency, the Judiciary and the Ombudsman requires amendments to be made to the relevant legislation. I will shortly be bringing forward proposals to the Oireachtas to bring these within the pay ceilings. That legislation will also formally provide for the reduction in the salary already accepted voluntarily by members of the Government.
Based on the information available within my Department, there are 28 post holders in the public service who are paid more than the proposed pay ceiling, as well as 45 members of the Judiciary and a number of hospital consultants. There are nine chief executive officers in the commercial semi-State sector who are paid more than €250,000.
The Government gave detailed consideration to the potential legal, commercial and contractual issues arising from the imposition of an immediate reduction of salaries on current incumbents whose salaries are in excess of the proposed salary ceilings. The Government decided to seek, in the first instance, voluntary waivers of salary of 15%, or a lesser amount where the application of the full reduction would bring the salary levels of such individuals below the proposed pay ceiling.
Additional information not given on the floor of the House
I welcome the early offer by 12 Secretaries General in the Civil Service whose pay rates were above the pay ceiling to complete a further voluntary waiver to bring their salaries in line with the ceiling. The necessary arrangements are being put in place by my Department for the other post holders concerned to complete the necessary waivers.
The salaries of 45 members of the Judiciary exceed the pay ceiling of €200,000. The salary of the President is set under statute at 10% higher than the salary rate for the Chief Justice. The Constitution affords protection to the remuneration of the serving President and of serving members of the Judiciary. It should be acknowledged that the President and many members of the Judiciary have made voluntary waivers of part of their current salary. The Government has approved the holding of a referendum in regard to the constitutional protection afforded to the remuneration of the Judiciary which will, if passed, facilitate the reduction of remuneration for current members. This matter is being pursued by my colleague, the Minister for Justice and Equality, Deputy Alan Shatter.
The information available to my Department is that seven university academics have been appointed under a framework agreement made under section 25(5)(a) of the Universities Act 1997. This facilitates the attraction of individuals with exceptional or scarce expertise and-or qualifications to their academic and research staff by allowing universities to offer enhanced remuneration packages, without recourse to further ministerial sanction. While the purpose of the provision remains valid, its exercise will be reviewed to ensure future appointments are made on a strictly limited and exceptional basis.
There are some 150 academic medical consultants, many of whom attract salaries in excess of €200,000. My colleague, the Minister for Health, Deputy James Reilly, proposes to address this issue in the context of his discussions with the representative associations for those public service grades on matters related to the current consultant contract.
Finally, the Government decided not to apply the pay ceilings to the Central Bank or the National Treasury Management Agency, NTMA, and my colleague, the Minister for Finance, Deputy Michael Noonan, outlined the remuneration rates in those agencies in his replies to Questions Nos. 70, 72, 74 and 75, taken together, and Questions Nos. 69, 71, 73 and 76, taken together, of 29 June. I have also written to the Minister for Finance concerning the pay arrangements, including in respect of greater transparency with regard to remuneration, within the relevant agencies. I intend to pursue this matter with him.
I am pleased to see the Minister in the Chamber to take these questions. I had intended to ask him a question regarding the remuneration of a particular individual, namely, Mr. Declan Collier, chief executive officer of the Dublin Airport Authority, DAA. Does the Minister consider it acceptable that a person in such a position should also be permitted to serve as a director of Allied Irish Banks and as a member of that bank's remuneration sub-committee? In other words, Mr. Collier is drawing a public salary from the DAA, receiving a second payment for his membership of the board of AIB and a third payment for his role on the bank's remuneration sub-committee. Does the Minister support the practice of people in the public service not only being paid an exorbitant salary but also being paid on the double and treble? I submitted that question to the Minister's Department, but it was not accepted.
I congratulate the Minister on his press announcement today regarding his meeting with representatives of the EU-IMF-ECB troika. I submitted a question for priority answer today on the Minister's specific role in dealing with the troika. Again, somebody in the Minister's Department decided he should not be allowed answer that question in the Chamber today and that it should instead be directed to the Department of Finance. The Minister should be careful; somebody is trying to nobble him before he even gets off the ground. He should tell his officials that questions on public expenditure issues should be answered by him rather than assuming the default position of making the Minister for Finance responsible for everything.
The Deputy will find that I am happy to answer any question. On his point regarding aggregate salaries, the individual to whom he referred was appointed to all those positions by the Government of which the Deputy was a member. Having said that, I take his point. The aggregation of salaries is an issue we will have to examine. The same issues will arise in regard to aggregation of pensions, which I will consider in the pensions Bill.
