Brendan Howlin (Wexford, Labour)

The Deputy has to be clear about what she means. If she is talking about setting new pay scales into the future, it will obviously require legislation. However, it would be a different matter to interfere with existing pay rates because not only would it upset the Croke Park agreement, but it would also involve significant industrial relations issues. If the Deputy is talking about putting a new ceiling on public sector pay, we have introduced a ceiling and substantially reduced pay at the top rate. Two years ago Secretaries General, grade 1, would have been earning €285,000. Their pay is now capped at €200,000, a substantial reduction. No Secretary General is in receipt of a salary above €200,000, even those legally entitled to it. At my request, they subjected themselves to a waiver of the amount in excess of that sum. This should be acknowledged as an important gesture of solidarity by those who were earning a substantial amount in excess of that threshold.

As a socialist or a social democrat, the Deputy would support the notion of a progressive tax regime. The way to deal with high earnings in a progressive way is to have a progressive tax system. Between the universal social charge and levies introduced in recent times, the marginal rate for deductions for anyone in the public service earning over €100,000 is 62.5% which by any international comparator is a significant reduction.

See this speech in context