Brendan Howlin (Wexford, Labour)

The Government has agreed with my proposal for the introduction of a general pay ceiling of €200,000 for future appointments to higher positions across the public service and a general pay ceiling of €250,000 forfuture appointments to CEO posts within commercial State bodies. I proposed this pay ceiling in the light of the decision taken by the Government on its first day in office to reduce the salary of the Taoiseach to €200,000 and apply a pro rata reduction to other members of the Government.

Arrangements are being made on an administrative basis to implement the pay ceiling for future appointments where that is appropriate, for example, within the Civil Service and for the heads of the four universities. Amending the salary rate for future appointments to certain statutory offices such as the Presidency, the Judiciary and the Ombudsman requires amendments to be made to the relevant legislation. I will shortly be bringing forward proposals to the Oireachtas to bring these within the pay ceilings. That legislation will also formally provide for the reduction in the salary already accepted voluntarily by members of the Government.

Based on the information available within my Department, there are 28 post holders in the public service who are paid more than the proposed pay ceiling, as well as 45 members of the Judiciary and a number of hospital consultants. There are nine chief executive officers in the commercial semi-State sector who are paid more than €250,000.

The Government gave detailed consideration to the potential legal, commercial and contractual issues arising from the imposition of an immediate reduction of salaries on current incumbents whose salaries are in excess of the proposed salary ceilings. The Government decided to seek, in the first instance, voluntary waivers of salary of 15%, or a lesser amount where the application of the full reduction would bring the salary levels of such individuals below the proposed pay ceiling.

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