Brendan Howlin (Wexford, Labour)

The Government supports a strong policy of pay restraint within the public sector. This is evidenced by the fact that immediately on assumption of office - on the night of their appointment - the Taoiseach, other members of the Government and a number of other office-holders voluntarily reduced their salary rates. In addition, I immediately began the process of considering whether it would be appropriate to impose general pay ceilings across the public service and in respect of chief executive officer posts in commercial semi-State companies where remuneration is subject to ministerial sanction. This process culminated in the Government's decision of June last to introduce 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 for future appointments to CEO posts within commercial State companies.

With regard to those office-holders whose pay rates are established in primary legislation and the Judiciary, and in light of the outcome of the recent referendum on the 29th amendment to the Constitution, new statutory provisions for the remuneration of judges, together with the necessary provisions to give legislative effect to the voluntary pay reductions for the Taoiseach and other office-holders, will be provided through a single dedicated enactment to be published shortly. The Deputy will recall that I made such a provision in the Public Service Pensions (Single Scheme) and Remuneration Bill that we passed. I will now take it out of that Act and present it to the Dáil, I hope, for early enactment as a stand-alone Bill.

Having given detailed consideration to the legal advice provided on potential legal and contractual issues arising from the imposition of an immediate reduction in the salaries of current incumbents whose salaries are in excess of the proposed ceilings, the Government concluded that the ceilings should apply only to new appointments to the relevant positions. In introducing general pay ceilings for new appointees, the Government recognised, however, that in a small number of cases exceptions may be necessary. Any such exceptions are subject to my prior approval as Minister for Public Expenditure and Reform. While no such exceptions have been made to date, the introduction of legislation imposing a statutory pay ceiling of €250,000 would limit the scope of the Government and Ministers to respond quickly to exceptional circumstances involving a role of substantial importance in the public service or a commercial semi-State sector. It is my view - I have considered this from the point of view of equity - that it is not practical to do what the Deputy suggests, although I would be minded to do so.

I am aware that, notwithstanding recent initiatives by the Government, there remains a small number of individuals - 18 - who are in receipt of remuneration in excess of €250,000 and whose remuneration is subject to ministerial sanction. In addition, certain academic consultants at professorial level in the health and education sector are in receipt of remuneration of more than €250,000 per annum. There are no persons in either the Civil Service or local authorities with salaries above €200,000.

See this speech in context