Dáil Éireann Debate, Wednesday - 22 January 2014
12. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform the number of persons in Government Departments, State agencies and semi-State bodies that are being paid over the recommended public sector salary cap, in tabular form; and if he will make a statement on the matter. [2696/14]
View answerIn June 2011, I introduced a general pay ceiling of €250,000 for future appointees to Chief Executive Officers of Commercial State Companies and a €200,000 pay ceiling for future appointees to higher positions across the public service, subject to certain exceptions. No approvals have been issued for new appointments in excess of these pay ceilings where they apply.
Since the application of the pay ceiling, direct pay reductions, on a progressive scale starting at 5.5% and rising to 10%, have been applied by the Government to all public servants with salaries of €65,000 or more under the Financial Emergency Measures in the Public Interest Act 2013 from 1 July 2013.
Based on the information available within my Department regarding post holders in Government Departments, State agencies and semi-State bodies, the Chief Executive Officer of the National Roads Authority retains an approved salary level in excess of €200,000 as his appointment pre dated the imposition of the salary cap. I am also aware that there are staff in the Central Bank and the National Treasury Management Agency whose salary exceeds €200,000.
There are also 2 Chief Executive Officers in the commercial state sector who are on salary levels above €250,000. The appointment of the CEO of the Irish Aviation Authority also predates the salary ceiling decision.
When introducing the general pay cap of €250,000 for Chief Executive Officers of Commercial State Companies, the Government decided that the CEO of the ESB would be paid a higher amount given the importance of the role. The CEO of ESB was appointed subsequently at an annual salary of €295,00 which represented a reduction of 43% in the maximum of the scale that applied to the previous incumbent of the post.
With regard to other classes of senior public servants,
- 5 persons in the Universities retain salary levels above the ceiling.
- At the time of the introduction of the pay ceiling it was indicated that the Minister for Health would address consultant salaries in the context of discussions arising in relation to the consultant contract under the Public Service Agreement. Following discussions with representative associations under the Public Service Agreement, a 30 per cent reduction in consultant rates for new appointees was implemented with effect from October 1, 2012. It is estimated that some 62 academic consultants are on approved salary rates above €200,000.
- Following the passage of the referendum on judicial pay in 2011 and of the subsequent legislation implementing the paycuts, certain members of the senior judiciary and the President retain pay rates greater than the salary ceiling.
As I have already noted, the salaries of all these public servants, with the exception of the President whose salary is afforded constitutional protection, were reduced under the recent legislation.
None of these figures are reflective of any voluntary arrangement that the individuals concerned may have entered into, following the Government decision in June 2011 to seek voluntary waivers of salary of 15%, or by a lesser amount if the application of the full 15% reduction would bring the salary levels of such individuals to below the pay ceiling of €200,000 p.a. across the public service and of €250,000 within Commercial State Companies.
