Dáil debates

Tuesday, 28 June 2011

4:00 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)

I cannot answer that question because I do not have that information. The Government has made it perfectly clear that it expects leadership from the top when it comes to adjusting to the economic reality. People will be asked to make further sacrifices and in that context we must have a situation where leadership comes from the front. There cannot be a situation where large bonuses are paid to State CEOs when serious adjustments must be made to the economy. The Government has set that out clearly, and we have clearly said that no bonuses should be paid to people who are already very well paid to do a particular job.

Last week the Minister for public expenditure and reform set out the pay ceilings for CEOs of commercial semi-State bodies and the wider public sector. The Minister for Communications, Energy and Natural Resources wrote to the chairman of each State company on 13 May, following consultation with the Minister for Finance, stating he is firmly of the view that bonuses are inappropriate and that payments should cease immediately. He instructed civil servants attending remuneration committees to reaffirm this position clearly and he asked the chairman of each body to copy his letter to the full board and the board to provide confirmation that payments would cease immediately. Following the Minister for Transport, Tourism and Sport's comments, the DAA board will comply with Government wishes.

So far, not all of the chairmen have replied to the Minister for Communications, Energy and Natural Resources but RTE, TG4, ESB, OSI and An Post responded that no further bonus payments will be made and he expects the other three bodies, Eirgrid, Bord Gáis and Bord na Móna, will confirm the same position shortly. In those cases formal confirmation may be necessary by the relevant remuneration committees and their boards.

The Minister for Communications, Energy and Natural Resources will continue to engage on any outstanding issues and will reaffirm the position that in the current financial circumstances, performance-related bonuses are utterly inappropriate and his clear position is that no bonus payments should be made. In saying this, he has been equally clear this position is no reflection on the performance of any individual but a necessary measure in the light of current economic circumstances.

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