Brian Lenihan Jnr (Dublin West, Fianna Fail)

Performance-related pay, while not part of the basic salary of assistant secretaries and deputy secretaries in the Civil Service and of related grades in other parts of the public service, has formed part of their remuneration package since 2001, on foot of a recommendation by the review body on higher remuneration in the public service in its report No. 38. The review body recommended that 10% of the bill for the grades would be set aside for performance-related payments. The Government accepted the recommendation. Accordingly, while the payments to individuals varied, the average payment was 10% of salary. It was decided in 2009 that the scheme would be terminated, but this was subject to discussion on the implementation of the decision with the relevant staff association.

It is not the case that the reduction for the grades in question is less than for other grades. In applying the recent reductions in pay, the Government considered that account had to be taken of the reduction in remuneration for assistant secretaries, deputy secretaries and related grades arising from the termination of the scheme of performance-related pay. In plain language, we decided to look cumulatively at the losses suffered by public servants in 2009. Otherwise, the total reduction in remuneration for these grades would have been greater than those for other public servants, including higher paid groups at the level of Secretary General or above. This would have been particularly unfair, given that the review body noted in its report that uniquely among all the grades they benchmarked against counterparts in four other countries, the salary level for assistant secretaries and deputy secretaries grades was broadly similar or lower.

In these circumstances, the Government decided that the reductions should comprise both a reduction in the salary scale and the termination of the scheme of performance-related pay that was previously payable to the grades. The resulting adjustments, including the effect of the termination of the scheme of performance-related pay, produce significant reductions in remuneration of 14% in the case of the grade of deputy secretary and 11.8% in the case of the grade of assistant secretary. These reductions are higher than those applying to other groups at the lower salary levels and significantly higher than the minimum reduction provided for under the legislation of 5%.

It is a fact that the scheme of performance-related pay provided an average payment of 10% of salary, although there were variations in the amounts paid to individuals. Therefore, this was an intrinsic part of the pay package for the grades and the termination of these payments cannot reasonably be ignored.

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