Dáil debates
Wednesday, 22 January 2014
Ceisteanna - Questions - Priority Questions
Public Sector Reform Implementation
9:50 am
Brendan Howlin (Wexford, Labour) | Oireachtas source
The Deputy has asked a number of relevant questions. The FEMPI legislation applies to public servants on the public payroll, Members of the Houses of the Oireachtas, the Judiciary, teachers, nurses and civil servants alike. Under the most recent FEMPI legislation, those earning over €65,000 took a pay cut. That was necessary in order to reduce the public pay bill.
The Deputy asked why I would not apply the same logic to the commercial semi-state companies; it is for the very reason that they are commercial companies. We have to set standards of moderation in pay across the economy as best we can. This is normally done by means of taxation policy. I have given an indication of moderation through the cap on pay for chief executive officers that we imposed from 2011. However, companies must have the flexibility to make pay arrangements that meet their commercial needs. I will give an example in my reply to the next question.
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