Dáil debates

Wednesday, 29 May 2013

Financial Emergency Measures in the Public Interest Bill 2013: Committee Stage

 

5:20 pm

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

There is a group of amendments here and I am in the unusual position where the amendment I drafted is close enough, but not identical, to that of Deputy Boyd Barrett. It is the same principle. Essentially, I want to amend the table on page 6 of the Bill along the general lines about which Deputy Boyd Barrett spoke and my amendment reflects that. My amendments, amendments Nos. 21 and 24, are part of this group for discussion purposes. The principle is the same, that those at higher levels should pay more. I mentioned it on Second Stage. On the specifics of my amendment, the table to which I refer proposes a reduction in remuneration of public servants earning more than €65,000 stating there should be a 9% reduction for those earning any amount over €150,000 but not over €185,000, and I suggest that the latter figure be increased to €200,000.

My next amendment deals with the next line in that table. It, essentially, states that any amount over €200,000 should have a 20% reduction. That is the essence of where my amendment is coming from on that last line of the table.

The Minister has capped the reduction for those on €185,000 at 10%. I picked the figure of €200,000 for a higher cap, based approximately on the Taoiseach's salary. With the passage of this legislation, perhaps his salary will be closer to €185,000 but it is in the order of €200,000. I believe that anybody in the public service who earns over €200,000 and is paid more than the Taoiseach should have a larger deduction than what is proposed. There is a 10% deduction proposed and I propose an additional 10% reduction. It is modest for those affected and I would urge the Minister to implement this.

In the case of a hospital consultant on €250,000, for instance, on the €50,000 of earnings between the €200,000 and €250,000 bracket I propose an extra 10% over and above what the Minister proposes. That 10% of that additional €50,000 would only be €5,000 gross and less than €2,500 net, which is not a great deal. It is only €200 a month. I am sure some of the consultants would not even get a night out on that.

My amendments relate to anybody being paid more than the Taoiseach in the public service. I have not stated there should be a pay ceiling, at €200,000, at the Taoiseach's rate. I recognise that many consultants earn over €200,000. For those on figures of up to €250,000, on the amount more than the Taoiseach's salary they should pay an extra 20% as opposed to the extra 10% being proposed by the Minister. The Taoiseach, as the head of the country, is a reasonable benchmark to take.

I repeat that there is no prospect of any of these consultants heading over the Border, or to England or Germany, for the figures I propose. For the extra €50,000, it will only amount to an extra €5,000 gross, which is less than €2,500 net. Nobody who is on a salary of €250,000 will leave the country because of a net reduction of 1% of gross salary. They will only lose €2,500. It is a modest proposal, but the Minister would be sending out a good signal that those earning more than the Taoiseach's salary should take a higher cut than what is being proposed. My point is straightforward.

I do not know whether the Minister is of a mind to accept any of the proposals here. It would be good for a debate such as this in the House if, somewhere along the line, a Minister was willing to accept an amendment. There is nothing wrong with this amendment. Nobody, if on the salary of €250,000 to start with, will leave the country for the loss of €2,500.

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