Pa Daly (Kerry, Sinn Fein)
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81. To ask the Minister for Transport, Tourism and Sport if he will report on the recent salary increases of CEOs of commercial State bodies under the aegis of his Department; if he has discussed these increases with the Minister for Public Expenditure, Infrastructure, Public Services, Reform and Digitalisation; and if he will make a statement on the matter. [63377/25]

Pa Daly (Kerry, Sinn Fein)
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Is mian liom ceist a chur ar an Aire Stáit mar gheall ar na salaries that have recently been announced for a number of incoming CEOs. Those salaries concern commercial State bodies under the aegis of the Minister of State’s Department. Has he discussed these increases with the Minister for Public Expenditure, Infrastructure, Public Services Reform and Digitalisation?

Seán Canney (Galway East, Independent)
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My Department has 19 agencies in total, 12 commercial and seven non-commercial, which have either a CEO or commissioner running the organisation. All CEO and commissioner contracts under the aegis of my Department have terms and conditions based on sanction received from the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation. All CEO salaries and benefits are published in the company’s annual report and financial statements, in keeping with the business and financial reporting requirements of the 2016 code of practice for the governance of State bodies.

In 2024, the senior post remuneration committee carried out a review of the remuneration arrangements for CEOs of commercial State bodies. This was the first such review since 2011. It was necessary to align CEO salaries with the market and to deal with recruitment and retention issues in commercial State bodies. The results of that review were published in March of this year. Following that review, the committee designated salary bands with defined salary parameters for each commercial agency. Requests received by the Department within those parameters are considered and approved by the Minister and then require sanction from the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation. No salary increases for a CEO under the aegis of my Department are approved without the prior sanction of the Minister for public expenditure.

Since the publication of the review and associated salary bands, two of the 12 commercial agencies under my Department have been awarded salary increases. Both of these agencies, Iarnród Éireann and Bus Éireann, were undergoing recruitment campaigns for new CEOs. Any increase in salaries that has been sanctioned following this process is in keeping with the salary band provided for these posts by the senior post remuneration committee review.

Pa Daly (Kerry, Sinn Fein)
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Of course we need to ensure that we have the best people for the job but it is not all about top dogs and the CEO. In a cost-of-living crisis, will the Minister of State outline the reasoning behind these salary bumps, some of which are over 33%? This morning, I listened to representatives from the Society of St. Vincent de Paul Ireland on the radio outlining that more and more families, particularly middle-income families, are seeking its help because of the massive increases in the cost of living in respect of electricity, heating and grocery bills. In Kerry alone, over 20,500 dinners were provided to families across the county this year. That is in stark contrast to salary increases of over 33%. Does the Minister of State have any thoughts in that regard?

Seán Canney (Galway East, Independent)
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First, the salary increases are in line with the aegis of the Department of public expenditure and reform and the guidelines set out by it. It is important to say that salaries of CEOs are in line with the responsibilities they take on. They vary from agency to agency, depending on the responsibility they have, the number of people working in the organisation and all that goes with that. With State and semi-State agencies, it is important that we have people in control who are able to progress Government policy, expenditure and infrastructure changes, especially in the area of transport where at all times we are trying to improve our roads, rail and all of our transport infrastructure. It is important that we attract the best people to these jobs. It is a fine balance. I hear what the Deputy is saying but it is a fine balance between having these State agencies operating in an effective manner and carrying out their jobs properly while also working within the bands set out by the Department of public expenditure and reform.

Pa Daly (Kerry, Sinn Fein)
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That would be fine if there were also fair play for workers and families, many of whom are also working in essential services. We need fair pay for them. The decision to abolish the pay cap is going to increase wage inequality. There will be a much bigger gap between the CEOs and the people who are doing the work on the ground. In the recent budget, supports to help people with the cost-of-living crisis were ripped away.

Last year, the CSO identified that in-work poverty stands at 5.9%, meaning approximately 145,000 people in employment are living below the poverty line. Earlier this year, research from the ESRI showed that when housing costs are taken into account, the figure is even higher. In a society of nearly full employment, nearly 15% of the State’s population is living in poverty, including one in five children. They are the workers who need a pay rise. The Government must step up and introduce a living wage for all workers, rather than just bumping up the salaries of the people at the top.

Seán Canney (Galway East, Independent)
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The Deputy talked about the minimum wage but the minimum wage was increased in the budget. It is important to keep a balance on the discussion. When it comes to people at senior management level, you are trying to make sure that we get the best value for money. In the context of the Department of Transport, as billions of euro are being invested in transport, that is important. Every chief executive who is working within transport and is responsible for the running of these organisations has a lot of people and responsibility. It is important to say that we have the right people in those positions. I do not disagree that there are people who need more pay but it is not related. The performance has been tested and there is a demand for people who can run the agencies to get the best out of them. It is about getting the best value for money in order that money is not wasted and we have money to pay for other services. That is important. The balance has to be kept in that regard.