Eamon Gilmore (Dún Laoghaire, Labour)

I can assure the Deputy that the Government will put an end to the high level of severance payments. I understand that the particular severance payment to which the Deputy referred was agreed to and signed off on by the previous Government.

There are a number of elements to this. First, the Government has already capped the salaries of top people in the Civil Service. After 29 February 2012, that cap on salaries will also apply to pensions. Second, the Minister for Public Expenditure and Reform is introducing new pensions legislation in respect of the public service, which will address many of the issues raised by Deputy Ross. Third, an element of the package to which the Deputy referred was an arrangement agreed in 1987. While prior to the putting in place of that arrangement secretaries general were appointed for life they were thereafter only given seven year contracts. I understand it was also agreed at that time that where secretaries general retired following the seven year period a separate severance element applied. I understand that arrangement applied in this case.

The Minister for Public Expenditure and Reform is reviewing that arrangement with a view to putting an end to it.

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