Mary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

2. To ask the Minister for Public Expenditure and Reform if he has lifted the ban he imposed in 2011 on performance bonuses for chief executives of commercial semi-State companies. [2890/14]

Seán Fleming (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

4. To ask the Minister for Public Expenditure and Reform his views on the payment of bonuses within the commercial and non-commercial semi-State sector; and if he will make a statement on the matter. [2927/14]

Mary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

My question refers to the ban on performance bonuses for the chief executives of commercial semi-State companies which has been in place since 2011. It also asks straightforwardly whether the Minister has lifted that ban or whether it continues. He might enlighten us on how long he envisages the ban continuing, if it is still in place. Will he refer, in particular, to Irish Water and the considerable public controversy surrounding the bonus payments proposed in that company?

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

I thank the Deputy for the question. In 2012 the Government reviewed the position on the payment of performance-related awards or bonuses for chief executive officers in commercial semi-State companies and agreed, on my recommendation, to continue with the policy we had introduced in 2011 of requesting the State companies concerned not to award such bonus payments in the light of the serious state of the public finances.

Furthermore, the Government agreed to continue the practice of excluding the payment of bonus provisions in the employment contracts of any newly-appointed chief executives to such state companies as well as in respect of contract renewals for incumbent chief executives. The requirement to cease such forms of bonus payment, together with other basic salary reductions introduced by the Government in respect of the chief executives of state companies, was necessitated by the difficult financial and economic circumstances we have faced. Accordingly, the Government will continue to consider future policy developments on performance-related pay to chief executives in the light of prevailing circumstances.

I have no role in the performance-related award schemes for staff below chief executive level in commercial state companies. It is expected that the boards of these organisations act responsibly in designing and implementing a pay structure that drives performance while ensuring they are fully compliant with Government pay policy. It is a matter of Government policy that performance-related award schemes continue to be suspended on an indefinite basis for the non-commercial state companies. Access to such schemes is no longer included in the employment contracts for newly-appointed chief executives or in contract renewals for incumbent chief executives of non-commercial semi-states. It is a matter for parent Departments in the first instance to ensure that all bodies under their aegis are compliant with the set-out Government policy.

Mary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

The Minister has repeated the fact that he has no role in bonus payments to people in roles below that of chief executive. I wonder out loud whether the Minister for Social Protection, Deputy Burton, and the Minister of State, Deputy Hayes, are aware of that, because they had a good deal to say on the matter on the public airwaves. Perhaps the Minister said it and I missed it. Will he confirm whether it is his intention, notwithstanding the change to contracts for incoming chief executives, to continue this ban on bonus payments for current serving chief executives? If it is to continue, then for how long?

The figure of €7,000 as an average proposed bonus payment to workers in Irish Water has gained considerable traction in the media. I note this is an average payment. Has the Minister more information on where exactly these specific bonus payments might fall? What might be the maximum bonus? What might be the minimum bonus anticipated for the workforce?

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

There are two questions. The first question was on chief executives. The policy we introduced in 2011 not to give performance-related pay to chief executives stays in place. I promised the Cabinet that I would review it annually. We reviewed it in 2013 and there was a determination that we continue with it because of economic circumstances. We will continue to review it periodically.

I believe we should get back to performance-related pay but we should have clear commercial targets set for the commercial semi-state companies. Where those targets are exceeded there might be a bonus remuneration added to chief executives' pay.

A question was asked about Irish Water. Bord Gáis Éireann and the staff group of unions have delivered on a transformational programme on pay, pensions and allowances under a programme that aims to save a total of €12 million in payroll costs. One element is allowance reform - that is, the discontinuance of legacy arrangements and allowances that used to be paid. This was implemented by the company throughout 2012 and delivered an estimated saving of €2.3 million to the company last year.

Mary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I thank the Minister for the background information on Bord Gáis Éireann. However, I am asking specifically about Irish Water. It is necessary to have clarity in the public domain on this matter, because a figure of €7,000, as an average, has been cited. Perhaps the Minister does not have the detail today and, if not, I am asking him to get it as soon as he can and to report it to us. What is the envisaged maximum payment under the scheme? What is the envisaged minimum payment? No more than anywhere else, in Irish Water not every staff member is on the same salary level or arrangement. If there is to be a public discussion on bonuses in the new utility, it is only fair, rather than giving an average figure, that we have clear information on the maximum and minimum. If the Minister cannot answer me today, he might give an undertaking to get that information for us.

Does the Minister envisage that the ban on bonuses for chief executives would come to an end in 2016? I note that is the timeline referred to by the chief executive of Irish Water in respect of what he called a pay freeze at the utility.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

There are several questions. The questions the Deputy asked about Bord Gáis Éireann are more appropriate to the Minister for Communications, Energy and Natural Resources. He is the line Minister with responsibility in that area and he has the detailed knowledge. I set Government policy on a cross-sectoral basis. As I have indicated to the House, I do not have responsibility for commercial semi-state company staff below the level of chief executive.

Deputy McDonald is right: we need to have a debate about this. We need to decide whether we want commercial semi-state companies. I do. We need to allow them to operate in a commercial way and to structure performance-related pay in a way that delivers best for the company and, ultimately, for the shareholder - that is, the taxpayer. There is an issue in respect of transparency and that should be examined. Anyway, the company is migrating from bonus payments or increment payments to a performance-related payment on a commercial basis.

Mary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I understand that. I am simply looking for information on the average payments of €7,000.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

As I said, the detailed information would be properly provided by the line Minister responsible, in this case the Minister for Communications, Energy and Natural Resources.

Mary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

What about the 2016 issue?

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
Link to this: Individually | In context | Oireachtas source

Sorry; we are over time.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

I do not know about the other question. That was the agreement reached in Bord Gáis Éireann on the pay freeze. In fact, I am told the pay freeze will last until December 2015 in BGE. I presume that was simply a three-year horizon, similar to the negotiations on the Haddington Road agreement. One must take a horizon of a reasonable period. I hope our economy will have improved at that stage to allow for consideration of wages in the economy generally.

Mary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Is that a "Yes"?