Michael D Higgins (Galway West, Labour)
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Question 71: To ask the Tánaiste and Minister for Finance if, in view of the changing economic climate, he proposes to review the decision to accept substantial pay increases for members of Cabinet, albeit on a deferred basis; and if he will make a statement on the matter. [15625/08]

Kieran O'Donnell (Limerick East, Fine Gael)
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Question 102: To ask the Tánaiste and Minister for Finance his views, with the new national wage talks underway, that following his call to ordinary workers for wage increase restraints he and his Cabinet colleagues must not take the excessive salary increases as set out in the latest report from the review body on higher remuneration in the public sector. [15911/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 71 and 102 together.

Increases for office holders and a number of other groups were recommended in Report No. 42 of the Review Body on Higher Remuneration in the Public Sector. The Review body is an independent standing body whose primary function is to advise the Government on the general levels of remuneration appropriate to higher public servants. As well as members of the Government and Ministers of State, the remit of the Review Body includes higher grades in the civil service, local authorities and the HSE, chief executives of non-commercial State bodies, higher ranks in the Garda Síochána and the Defence Forces, and members of the judiciary.

The Review Body found that the remuneration of many senior public service posts is below private sector levels even when allowance is made for the superior value of public service pensions. In relation to members of the Government and other political office holders, the Review Body considered that direct comparison with the private sector was not appropriate and that the remuneration of senior public servants was a more relevant comparator. In their case, therefore, the comparison with the private sector is an indirect one.

The overall effect of the review is that the salaries recommended are below the average level of salaries in the private sector since the recommendations of the Review Body are based on the lower quartile of the private sector rates and have been further reduced by 15% to allow for the superior value of public service pensions relative to the private sector. It is established Government policy to accept the recommendations of this independent review body and this approach has been taken by successive Governments. In line with the established practice, the Government decided to accept and implement the recommendations of the review Body.

In the case of public service groups generally covered by the Review Body's recommendations, the Government decided that the increases recommended by the Review Body would be implemented on the following phased basis:

5% from 14 September 2007, the date of the Report, or where the total increase is less than 5%, the full increase from that date;

half the balance from 1 September 2008; and

the remaining balance from 1 March 2009.

As the Deputy is aware, the Government has reviewed the arrangements set out above in respect of their application to members of the Government and Ministers of State. In their cases, it was decided in December last that the increases would be deferred and would be phased as follows:

4% from 1 September 2008;

half the balance from 1 September 2009; and

the balance from 1 September 2010.

This will mean that the full increase to political office holders will not be paid until 1 September 2010.