Committee on Finance, Public Expenditure and Reform and Taoiseach publishes Report on the Processes etc to the Appointment of Senior Executives

The Committee’s Report on the Processes etc to the Appointment of Senior Executives, which was produced in conjunction with the Committee of Public Accounts (PAC), follows significant public concern at the decision by the Government earlier this year to increase the salary for the post of Secretary-General of the Department of Health by €81,000, an increase of 40 per cent.

Launching the report, Deputy John McGuiness, Cathaoirleach of the Finance Committee, said: “The post of Secretary General of the Department of Health became vacant in early 2020 and was filled on an acting basis, but no formal recruitment process was undertaken until January 2021. In the interim, the then Secretary General of the Department of Public Expenditure and Reform was requested to move to the Department of Health on an interim basis pending an open competition.

“In addition, the Minister for Public Expenditure and Reform agreed to sanction a salary increase of €81,000 for the permanent post, bringing the total salary to €292,000 – the highest salary for a Secretary General in the Civil Service. No formal process was engaged in, either in terms of identifying an interim appointee or setting the salary level.

“The only rationale in this regard appears to have been to offer an enhanced salary but to ensure the total salary on offer was below €300,000. The stated purpose of the enhanced salary was to attract high calibre candidates, particularly international applicants, but the Committee heard that of the 23 applicants, only three were from abroad.”

Deputy Catherine Murphy, Leas-Chathaoirleach of PAC, said: “Members of the Committee of Public Accounts were very concerned at the manner of the interim appointment to the post of Secretary General of the Department of Health and the €81,000 pay increase for the post. The complete absence of the use of normal procedures and the 40 per cent pay increase for the post required examination. The failure to benchmark the new salary to a similar position in the public service only added to that concern.”

Both Deputy McGuinness and Deputy Murphy noted that the Committee was “taken aback at the lack of engagement by the majority of those who were requested either to provide information and-or attend a meeting of the Committee. The Committee particularly notes the lack of adequate engagement by some central figures. It believes their input was essential and it regrets that they chose not to engage with the Committee in any meaningful way.”

In its report, the Committee recommends that:

• A formal process for appointments, both interim and permanent, to senior posts in the public service is established and followed in all instances;
• While verbal briefings at Cabinet may be necessary on occasion, reliance solely on verbal briefings on details of such appointments, specifically the attached pay and conditions, which may be or are likely to be subject to public interest should not be permitted;
• A body similar to the Review Body on Higher Remuneration in the Public Sector be established immediately to review the remuneration of senior posts in the Civil and Public Service and to develop processes and procedures governing appointments to senior posts on an interim and permanent basis;
• A formal data-led and scientific process is followed in the setting of salary levels for specific roles and that this should be allied with or incorporated into the establishment of a pay review body as recommended above, and such processes should be open, transparent, and objective so that desired outcomes are measurable and quantifiable;
• Ministerial power to set individual salaries, terms and conditions be reviewed with a view to ensuring adherence to openness, transparency and sufficient oversight;
• Interim appointments, particularly those at a senior level where individuals are in a position to apply for permanent positions, should not be sanctioned in the absence of clear and objective criteria which ensure that any subsequent process is fair to all involved;
• The Top-Level Appointments Commission (TLAC) be established as a wholly independent body that operates as a distinct entity outside of and separate from the Department of Public Expenditure and Reform and whose membership should be split 60:40 between the public and private sectors, with each member having some professional experience in an applicable area, such as the law or HR;
• Individuals requested to engage with the Committee and in the work of other Oireachtas Committees should treat such requests with respect and co-operate to the fullest extent and recommends that any wilful failure to do so should be considered to be a contempt of Parliament, and that that reform in this regard be considered by the Committee on Standing Orders and Dáil Reform to ensure that senior public sector figures engage with the work of Oireachtas committees when requested to do so.

Deputy McGuinness said: “It is clear to the Committee that no formal procedures or benchmarking processes were followed in either making the interim appointment or agreeing to a salary increase of 40 per cent for the permanent appointee. Had the formal recruitment process commenced in October 2020, it would have obviated the need for an interim appointment and much of the difficulty that arose in this regard would have been avoided.”

He added: “The Committee is conscious of how the public is likely to perceive a large salary increase against the backdrop of the economic hardship caused to many by the pandemic and the level of increases provided for public servants – 1 per cent under the Public Service Stability Agreement versus the 40 per cent increase in the case of the Secretary General post. The lack of transparency and accountability involved and the impact on public confidence and trust is a source of serious concern to the Committee.”

Deputy McGuinness concluded by saying the Committee is “of the opinion that a formal role of Head of the Civil Service should be created to ensure adequate oversight of Secretaries General and so that disciplinary matters can be dealt with, should they arise”.

Deputy Murphy, on behalf of PAC, said: “The examination of this matter by the Committee revealed the lack of transparency and the absence of any formal process in both the selection of the interim Secretary General and the sanctioning of a large pay increase. It also clarified that the whole process was managed by a small group in an ad hoc fashion.

 “The 14 recommendations are clear and comprehensive. They align with best practice and set out clear standards and procedures which neither Governments nor senior officials should disregard. The public will expect these recommendations to be implemented and will expect nothing less.”

Deputy McGuinness and Deputy Murphy thanked the Members of both Committees for their input in developing this report.

The Report on the Processes etc to the Appointment of Senior Executives is available on the Oireachtas website.