Dáil Éireann Debate, Thursday - 19 July 2012
834 Deputy Mary Lou McDonald asked the Minister for Transport, Tourism and Sport the annual saving to the Exchequer if all board members’ fees paid to agencies under his aegis were cut by 25%, 35% and 50%. [36627/12]
View answer835 Deputy Mary Lou McDonald asked the Minister for Transport, Tourism and Sport the annual saving to the Exchequer if the pay of all CEOs of State agencies under his aegis were capped at €100,000. [36643/12]
View answerI propose to take Questions Nos. 834 and 835 together.
It is not possible to quantify the information sought by the Deputy given the varying tax treatment of couples and single people. In the case of commercial agencies, neither the CEO salaries nor the board members' fees are a charge on the Exchequer, so there would in fact be a net loss to the Exchequer (arising from foregone income tax and other statutory deductions) if these were reduced. In the case of non-commercial agencies, the net impact would depend on the tax allowances and bands of the individuals concerned.
I have no plans for, nor am I currently examining the effect of, the introduction of a unilateral pay cap at €100,000 for commercial and non-commercial state agencies under the aegis of my Department. To do so would be a breach of the Croke Park agreement. Nor am I contemplating or examining the effect of a reduction in Board Fees. Both are set in accordance with general Government pay policy for the agencies under my aegis. Under this, the fees paid to board members range from €1,575 in the case of some of the smaller port companies to €31,500 for the chairpersons of CIE and the DAA. These fees are paid before tax and are relatively modest given the work and responsibility involved.
The Deputy will be aware in this context that the Government supports a strong policy of pay restraint in the public sector as evidenced by the announced pay caps and revised salary levels for Chief Executives and other senior management in both the commercial and non-commercial state agencies.
Having said that, strong boards and strong senior management are absolutely essential if our State agencies are to make the contribution that we require to economic recovery. It would be a mistake in my view to reduce remuneration to levels which are potentially not sufficient to attract the calibre of personnel that we need.
