Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

Nothing is stopping Deputies Healy or Mattie McGrath from returning the sum of money as proposed in the motion. If they want to do so, they can return the sum of money. Then, I will regard them as serious.

In June, 2011 the Government took two significant steps on the payment arrangements of CEOs in commercial State bodies. It introduced a general pay ceiling of €250,000 in the case of newly appointed CEOs in commercial State companies, with reductions to similar appointees in such companies with lesser pay ceiling levels. It sought voluntary reductions in the remuneration levels of those already serving CEOs with salaries in excess of €250,000. Furthermore, it is Government policy that, in general, newly appointed CEOs are to be placed on the minimum point of the relevant salary range as opposed to the practice of assigning such personnel to around the mid range of such salary scales. The position in respect of already serving CEOs is that, for contractual reasons, the imposition of reduced salary rates could not be unilaterally proceeded with by the Government. However, incumbent CEOs in the commercial State companies with a salary in excess of the general salary ceiling of €250,000 per annum were requested to make a voluntary waiver of salary of 15%, or to waive a lesser amount if the application of the full 15% reduction would have brought their salary below €250,000. All seven incumbent CEOs whose salaries were, at the time of the waiver request, in excess of €250,000 agreed to the waivers.

The system of performance-related award schemes for the CEOs of commercial State companies, whether newly appointed or serving incumbents, has been suspended. This Government said it would stop the runaway train of pay that existed within the upper echelons of the commercial semi-State sector. We said we would do it and we have done so.

It is important to be clear on what is involved in reducing pensions in payment. In this context I intend to set out some of the recent history and background to this issue. The previous Government decided to reduce public service pensions. We are in agreement that it was a painful but necessary step to take, given the state of the public finances. The measure secures annual savings estimated at €100 million and applies to over 130,000 pensioners. The cuts are tapered to mitigate the effect on the lowest level of pension income and are progressive in nature.

See this speech in context