Brian Cowen (Laois-Offaly, Fianna Fail)

It is important to point out that the benchmarking report did not take chief executive salaries of major publicly quoted companies, it took the lower quarter of a range of salaries as being a fair representation, as far as one can find equivalence in these matters, between the higher paid grades in the public sector and a comparison in the private sector that was appropriate. The benchmarking body was careful and did not bring into play the very high levels of remuneration in the private sector to which the Deputy referred. That should be said in favour of the body. It was a careful calibration of what the comparison should be. I refer to the level of responsibility that these grades provide.

There is nothing teed up in respect of the pay agreement. It is as it is, that is what was agreed and negotiated. It covers the 21-month period and sin é. There is no understanding beyond that. It will be a matter for negotiation in due course after we get this one through.

Given the context of the budgetary and fiscal challenge facing any Government in present circumstances in Ireland, with a public pay and pensions bill of €20 billion, no area of policy can be immune from having to make a contribution to trying to address the fiscal deficits that have emerged. During a previous Question Time, talking about this generally, this method we have adopted provides the maximum flexibility for Departments and agencies to effect these changes and, at the same time, meet their targets. By putting it across the full pay bill spectrum, there are many ways this can be achieved. Flexibility is accorded to bodies to achieve this in whatever way is appropriate to the circumstance, rather than simply the blunt instrument of a staff embargo from a specific date.

Regarding the question of inability to pay, I am not aware if the State has invoked an inability to pay clause, or if any agent of the State has done so.

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