Written answers

Thursday, 18 November 2010

Department of Finance

Departmental Expenditure

5:00 pm

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 81: To ask the Minister for Finance the revenue which would have been saved in a full year if he implemented the findings of the Review Body on Higher Remuneration as indicated during the last budget and adjusted salaries down by an 8% cut for assistant secretaries and 12% for deputy secretaries in Government Departments in conjunction with the termination of the performance-related bonus scheme; the amount saved in a full year from the amended salary reductions for the same category of public servants implemented following the budget; and if he will make a statement on the matter. [43492/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy is aware the Government decided in 2009 that the performance related award scheme for Assistant Secretaries and Deputy Secretaries would be terminated, which resulted in an annual saving of around €2m. In applying the reductions in pay in January 2010, I considered that account had to be taken of the reduction in remuneration for Assistant Secretaries, Deputy Secretaries and related grades arising from the termination of the scheme. Otherwise, the total reduction in remuneration for these grades would have been greater than those for other public servants including higher paid groups at the level of Secretary General or above. I decided that the reductions should comprise both a reduction in the salary scale and the termination of the scheme of performance-related pay previously payable to the grades. The resulting significant reductions in remuneration amounted to 11.8% in the case of the grade of Assistant Secretary and 14% in the case of the grade of Deputy Secretary. These reductions are higher than those applying to other groups at the lower salary levels and significantly higher than the minimum reduction provided for under the legislation of 5%.

The additional amount saved in a full year through the reductions that were applied to these grades is estimated at around €0.6m. Applying the reductions set out in the Review Body Report would have resulted in an additional saving in the region of €1m.

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