Brian Cowen (Laois-Offaly, Fianna Fail)

I do not agree with that argument because the introduction of the performance-related bonus system for these grades was taken into account in determining salary levels by review bodies in the past. In other words, the existence of the system was taken into account when the review body was deciding the salary levels because the system was based on a discretionary decision by senior management, year on year, depending on performance and that is the part of the balance between performance and bonus systems always. That the incentive exists for these grades and not for others was taken into account in determining salary levels.

That is borne out by the fact that when the comparison was made between the assistant secretary grade and its equivalent in other countries in the exercise the Minister for Finance asked the review body to conduct, it was shown it was more in line with foreign salary levels than was the case with other grades. That confirms that in determining salary levels in the past the existence of the performance-related bonus scheme was taken into account by the review body and, therefore, on the basis that we were terminating the scheme, had the proposed pay reductions been applied then to this grade, as recommended, these officials would have faced a higher reduction than officials in higher grades. We had to make an adjustment to maintain the principle of progressivity. One has to do what is fair in all circumstances but some people, perhaps representing lower grades, said these officials were taking a smaller pay cut than their members. That is not the case and if the Deputy examines the measures we have had to take since the crisis emerged, the percentage reduction for this grade is rightly well over double that of lower grades, which is what one would expect.

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