Brian Cowen (Laois-Offaly, Fianna Fail)

It is important to make a distinction in these cases. It is not correct to conflate the banking sector bonus system, in which a large, additional to basic pay, discretionary bonus based on meeting certain objectives was in place, with payments to middle-ranking public servants at principal officer and assistant principal level.

In 1994, the programme for competitiveness and work provided for a 1% pay increase for people at that level. In some Departments it was incorporated into the full pay pot for those grades while in others it was used to recognise work of exceptional merit. This is against the background where those grades have seen a reduction in their pay of 17% through Government decisions. It is important not to conflate those two issues as being the same, as they are not.

The special service payment in the Department of Finance was based on criteria concerning special demands of the job or whatever occurred in a previous year. The average payments were between €2,000 and €2,500 per year. That should not be conflated with bank bonuses.

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