Michael McGrath (Cork South Central, Fianna Fail)
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Question 73: To ask the Minister for Finance if he supports the previous Government's policy decision to implement a maximum salary cap in the public sector of €250,000 and, if so, the steps he will take to ensure the salary cap is adhered to by State agencies and commercial State companies. [6473/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 72 and 73 together.

The Government supports a strong policy of pay restraint within the public sector, including the application of pay caps. On assumption of office the Taoiseach, other members of the Government and a number of other officeholders have, in line with that commitment, voluntarily reduced their salary rates, with the Taoiseach's salary now set at €200,000.

Following the announcement of the proposed salary cap of €250,000 in the public sector in his budget 2011 speech, the then Minister for Finance acknowledged there would be contractual issues in relation to the application of that cap to current incumbents of posts. This remains the position. I propose to give further consideration as to how best to effect reductions in the remuneration of such posts in the light of the contractual issues identified.

From information available there are 28 individuals in the Commercial State Companies (9), Non Commercial State Agencies (5), the Oireachtas (1), the Education Sector (4) and the Judiciary (9) in receipt of salaries in excess of €250,000. There are no persons in either the Civil Service or in the Local Authorities with salaries in excess of €250,000.

In addition to the above, certain Academic Consultants at professorial level in the Health Sector are in receipt of remuneration in excess of €250,000 per annum. While the HSE have confirmed that there are 168 Academic Consultants, it has advised that a break down of the numbers between professorial and other grades in the academic consultant stream by contract type is not available. However, full details of current remuneration payable to consultant grades in the Health Service Executive in respect of each contract type can be found at www.hseea.ie.

It is to be noted that remuneration rates in the Central Bank Financial Services Authority of Ireland are solely a matter for the Board of the Bank and the Authority to determine while the remuneration packages of all National Treasury Management Authority staff (which includes the staff of the National Asset Management Authority) are negotiated on an individual contract basis and are confidential. In these circumstances any staff in these bodies who may be in receipt of salaries in excess of €250,000 are not included in the 28 posts cited above.

The amount of actual earnings for the first three months of 2011 of the persons in the 28 posts cited above is not available as payments are not made centrally but through each relevant person's own payroll section. It is also to be noted that some individuals may be taking a voluntary reduction in pay The salary to apply to future appointees to relevant positions in the public service will be considered on a case by case basis, having regard to the overall need for pay restraint. In terms of the salaries of CEOs of Commercial State Companies such salaries require the agreement of both the relevant Minister and the Minister for Finance. The current arrangements for setting the remuneration of the commercial State sponsored bodies is based on comparative posts in the private sector – the last such review took place in 2007. It is my intention to give further consideration to the overall remuneration package of CEOs of Commercial State Companies. In the interim the salary to apply to future appointees to any such positions that fall vacant will be considered on a case by case basis.