Brendan Howlin (Wexford, Labour)

I propose to take Questions Nos. 7, 14 and 17 together.

Since taking office, the Government has significantly reduced the salary rates paid to the chief executive officers of commercial State companies. These measures on salaries have included the introduction of a general pay ceiling of €250,000 per annum in the case of all newly appointed CEOs in commercial State companies, along with reductions to similar appointees in each state company with salary maxima below the ceiling of €250,000 per annum. This has had the effect of reducing the salary levels of all newly appointed CEOs in a proportionate manner while maintaining the established weightings of the commercial State companies.

Provision exists for a CEO appointee to be placed above the base salary applying to the particular post concerned subject to the submission of a business case to me by the relevant organisation. Such a business case was made to me in respect of the chief executive officer of the VHI, which, on consideration, I was prepared to accept. The newly appointed CEO was accordingly assigned a salary above the base salary of €191,014 per annum but below the general pay ceiling of €250,000 per annum applying in the commercial State company sector. There has therefore been no breach of the general salary ceiling applying in this sector in respect of the CEO of the VHI.

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