Written answers

Tuesday, 14 February 2012

Department of Public Expenditure and Reform

Public Sector Remuneration

9:00 pm

Photo of Mary Lou McDonaldMary Lou McDonald (Dublin Central, Sinn Fein)
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Question 281: To ask the Minister for Public Expenditure and Reform further to Parliamentary Question No. 137 of 1 February 2012, if he will explain the way in which he can stop awarding up to ten added years and a special severance gratuity payment of half a year's salary to new entrant Secretaries General without legislative change but is unable to end the awarding of added years and special severance gratuity payments for city and county managers of local authorities [8460/12]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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As stated by the Minister for the Environment, Community and Local Government in his reply, the specific entitlements in question are provided under Article 78 of the Local Government (Superannuation) (Consolidation) Scheme 1998. The terms of the scheme are set out in SI 455 of 1998 and, consequently, any changes to the terms would require legislation. As the Minister advised in his reply, the matter is currently under examination in his Department.

The exit terms applicable to Secretaries General were provided under Government Decisions and, therefore, legislation to amend the terms was not required.

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Question 282: To ask the Minister for Public Expenditure and Reform the number of public sector employees whose salary is in excess of €250,000 and €200,000 respectively in the current year; the way in which this differs in total from 2011; and if he will make a statement on the matter. [8482/12]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I refer to my reply to Question No. 20285/11 of 14 July 2011 regarding 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 Companies.

The enactment of the Financial Emergency Measures in the Public Interest (Amendment) Act 2011 and the retirement of a number of senior office holders has resulted in a significant reduction in the number of public sector employees receiving approved salaries in excess of the pay ceilings introduced. This trend will continue as existing post holders retire and new appointments are made.

Based on the information available within my Department, there are 24 (reduced from 28) post holders in the public service who are currently paid more than the proposed pay ceiling including the President. The Constitution affords protection to the remuneration of the serving President. There are now 2 members of the judiciary (reduced from 45) who receive salaries in excess of the ceiling of €200,000. In addition there are 7 (reduced from 9) Chief Executive Officers in the Commercial Semi State Sector where the current salary exceeds the pay ceiling for that sector of €250,000.

There are also some 150 academic medical consultants, some of whom would attract salaries in excess of €200,000. My colleague the Minister for Health 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.

My colleague the Minister for Finance has outlined the remuneration rates in respect of the Central Bank and the National Treasury Management Agency (NTMA) in his replies to Question Nos. 17682/11, 17686/11, 17690/11 and 17691/11, and to Nos. 1768/11, 17685/11, 1788/11 and 17692/11 on 29 June last. I am currently in correspondence with the Minister for Finance, concerning the pay arrangements in those bodies, including in relation to greater transparency with regard to remuneration.

The salaries applying to the above posts are not 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. For example all Secretaries General with approved salary levels above the ceiling have voluntarily waived the additional pay.

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