Written answers

Wednesday, 28 June 2006

11:00 pm

Photo of Paul GogartyPaul Gogarty (Dublin Mid West, Green Party)
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Question 44: To ask the Minister for Finance the number and type of State body positions which will be affected by the increase in chairperson's salaries recently approved by Cabinet; and if he will make a statement on the matter. [24808/06]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The level of the fees payable to the non-executive chairpersons of State bodies was revised by Government at its meeting on 20 June 2006. The revised fees are payable with effect from 1 January 2006.

The Government decided to increase the fees payable to ordinary board members and directors of State bodies by roughly the amount of the increase payable to senior civil servants in the period since the last review of fees was conducted in 2001. This level of increase was also applied to the fees payable to the chairpersons of the smaller State bodies.

However, the Government recognised that the level of commitment required from the chairpersons of the most important State bodies was not adequately remunerated. Accordingly, it was decided that the fees payable to the chairpersons of the largest and most complex State bodies should be increased by a larger amount to reflect the workload of these positions. In this case, it was decided that the fees payable to the chairpersons of such boards should be double that payable to the ordinary members or directors of those boards.

The Government also decided that the chairpersons of a second tier of State bodies were not adequately remunerated for their contributions. In this case, it was decided to raise the fees payable to chairpersons of such boards so that the fee was just over 70% more than the fee payable to the ordinary members or directors of those boards.

The fees payable to the chairpersons and members of State boards depend on the size and complexity of the bodies they govern. In order to determine what level of fee is appropriate, State bodies are divided into four categories, depending on the pay of their chief executives. The level of remuneration of the chief executive is an objective assessment of the relative importance and complexity of the bodies concerned.

The fee which the Government decided should now be payable to the chairpersons of the largest State bodies — Category 1 — is €35,000. The fee payable to the chairpersons of the second tier of State bodies is €24,000. The fees payable to the chairpersons of the smallest state bodies — Categorises 3 and 4 — are €14,000 and €10,500 respectively.

I consider that, even after the application of the increases, the fees payable are modest relative to those payable to chairpersons and members of boards of private sector companies of comparable size.

The Deputy should consult with other Ministers for information on the numbers of positions in State bodies under their aegis which are affected by the increase in chairpersons' fees. I will provide the information on bodies under the aegis of my own Department, as soon as it has been collated.

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