Kieran O'Donnell (Limerick East, Fine Gael)

I wish to share time with Deputies Varadkar, Feighan, Connaughton, Neville, McHugh and Doyle. I trust the Leas-Cheann Comhairle will inform me when I have one minute remaining. I am very pleased to be here tonight to support the motion proposed by my colleague, Deputy Bruton. I note Deputy Mattie McGrath has left the Chamber. The only thing that was surprising about his speech was that it was unsurprising. We heard the speech we expected in that there was an about-turn. The Deputy was on the road to Damascus for a while but turned back very quickly.

It is imperative that we deal with facts. The tables produced by the Government are based on net figures but if we base them on gross figures we will note staff at assistant secretary level are taking a pay cut of 3%. They should be taking a cut of 8%. They are, therefore, effectively receiving a bonus of 5% by comparison with everyone else.

I tabled a question for the Minister for Finance asking him the date on which the Government made its Cabinet decision to reduce the pay cuts for certain senior public servants and the discussions that took place prior the decision. The reply was that the position regarding remuneration was considered by the Cabinet on 9 December, the same day as the budget. However, the budget speech states:

The Government has considered the recommendations of the Review Body and intends to apply reductions to all public servants in the higher pay bands [...].

[...] Those at the top will lead by example in this national downward readjustment of pay. Legislation to give effect to these substantial reductions in senior level pay will be published shortly.

On 15 December, when the Minister spoke on Second Stage of the Financial Emergency Measures in the Public Interest (No. 2) Bill, which was to reduce pay for public servants, he gave no indication whatsoever that there would be a change to what he outlined in the budget. He mentioned a substantial inequity in respect of section 6. Section 6(a) states, "exceptional circumstances exist (because of some particular aspect or condition of their employment, office or position) in respect of such public servant, class or group and a substantial inequity would thereby arise". In spite of this, the Minister stated he was taking on board the recommendations of the review group, which stated it "remains in favour of moderate, performance-related award schemes, where bonus payments reflect the achievement of challenging targets, as motivators of excellence."

Deputy Mattie McGrath congratulated the Minister for Finance on doing away with the bonus scheme in February 2009. It was regarded as a bonus scheme last year but this year it is regarded as part of basic pay. The Government cannot have it both ways and there is considerable inequity in its provision.

There was a Cabinet decision on pay on 9 December and the Minister of State at the Department of Finance, Deputy Mansergh, who is present, made no mention of it. There was no reference to it in the budget speech or during the passage of the Financial Emergency Measures in the Public In. The Taoiseach stated the Bill came into being on 21 December and decided on 22 December, the following day, that he would direct, under section 6, that the pay reductions would not apply. He issued a circular on 23 December.

The Government backtracked. Something happened whereby it made a decision at a late date or, worse, made the decision on 9 December and effectively engaged in a cover-up in the House. The same tactic was used in respect of the debate on NAMA, the IMF and the provision of credit flow. The House is entitled to know the exact advice given to the Government. Was a memorandum provided on 9 December?

Is the word "bonus" mentioned in the contracts of employment for the senior public servants? How many people of assistant secretary grade were receiving the bonuses? Were all of them receiving them? It is a question of fairness. Staff on relatively low pay are taking a cut of 5%, at a minimum.

I hope Deputy Mattie McGrath will see the light again before the vote at 8.30 p.m. and vote with us. It is a question of fairness. The Government is looking after the privileged few and neglecting the lower-paid and middle-paid public servants who are under severe pressure.

See this speech in context