Fergus O'Dowd (Louth, Fine Gael)
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Question 120: To ask the Minister for Health and Children the arrangements that are in place to implement policy in relation to determining and approving the remuneration of each chief executive officer and managing director under the auspices of her Department; the salary of each such chief executive officer and managing director; if such arrangements have been breached in the past three years and the person involved; if she has taken any action; and if she will make a statement on the matter. [24601/10]

Mary Harney (Dublin Mid West, Independent)
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My Department approves the remuneration of CEOs of the State-sponsored bodies under its aegis and, from time to time, notifies the bodies concerned of adjustments resulting from the terms of national pay agreements and, where applicable, recommendations of the Review Body on Higher Remuneration in the Public Sector. In January of this year, the Department conveyed detailed instructions to its non-commercial State-sponsored bodies on the application of pay reductions to Chief Executive Officers of such bodies with effect from 1 January 2010 in accordance with the Financial Emergency Measures in the Public Interest (No. 2) Act 2009 (No. 41 of 2009).

My Department's agencies are required to comply with the Department's Frameworks for Corporate and Financial Governance. The two Frameworks (one for regulatory bodies under the aegis of my Department and one for the agencies funded by the Department) are supplementary to statutory requirements and to Government approved guidelines including the Code of Practice for the Governance of State Bodies.

Specifically, the Code of Practice requires Chairpersons and Boards of all State bodies to implement Government policy in relation to the total remuneration of the Chief Executive/Managing Director. Arrangements put in place by a relevant Department or the Department of Finance for determining and approving the remuneration of the Chief Executive/Managing Director must also be implemented and adhered to. The review and appraisal of the degree of compliance with legislation and with requirements centrally (e.g. by Government, the Department of Fiance and my Department) is included in the objectives of an Agency's internal audit function as set out in my Department's Frameworks for Corporate and Financial Governance.

Officials of my Department ensure that the Frameworks for health sector agencies are adhered to by monitoring progress on an ongoing basis.

Over the past three years, my Department has dealt with two specific cases where it came to light that the ceo of an agency under its aegis was being paid a higher basic salary than the approved rate. In the first case (National Treatment Purchase Fund), the position was subsequently regularised with the approval of the Department of Finance. In the other case (National Cancer Screening Service), the matter has yet to be brought to finality.

A table outlining the salaries of the CEOs is currently being prepared and will be forwarded to the Deputy at the earliest opportunity.