Michael Noonan (Limerick City, Fine Gael)

The issue of remuneration, which includes the granting of performance-related awards schemes, severance payments and pensions to senior public servants and public sector workers, is a matter for the Minister for Public Expenditure and Reform in the first instance. I have been informed by my colleague, the Minister, Deputy Howlin, that performance-related award schemes were available in the past to certain posts in the following areas of the public service: the Civil Service, the Permanent Defence Force, An Garda Síochána, the health service, the local authorities and a number of non-commercial State agencies. Against the background of the deterioration in the public finances, it was considered that such schemes were no longer appropriate. In this context, the schemes for the Civil Service, the Permanent Defence Force, An Garda Síochána, the health service and the local authorities were suspended in 2009. No awards were made in 2009 in respect of 2008 performances. This remains the position. I do not believe the tax code should be the preferred mechanism to deal with bonuses, severance payments and pensions paid to senior public servants. If performance-related bonuses or severance payments are neither justifiable nor affordable, they should not be paid in the first place rather than being super-taxed after the fact.

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