Maureen O'Sullivan (Dublin Central, Independent)
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Question 78: To ask the Minister for Finance, in view of the worsening of pay and conditions for persons on low pay that are now being signalled, his views on whether it is reasonable and justified that more than 650 senior public servants continue to enjoy an exemption from the full impact of pay cuts in the public sector; and if he will make a statement on the matter. [14117/11]

Michael Noonan (Limerick City, Fine Gael)
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I assume the Deputy is referring to the decision made by the previous Minister for Finance, in determining the appropriate reduction in basic salary to apply to Assistant Secretaries, Deputy Secretaries and related grades in other areas of the public service, including groups at comparable levels in the local authorities, HSE, some State Bodies, Garda Síochána and Defence Forces, to take account of the reduction in their remuneration caused by the termination of the scheme of performance-related pay in 2009. These cuts formed part of the overall measures taken to reduce the cost of the public service pay bill significantly in order to help restore Ireland's budgetary position. I understand that the then Minister exercised his powers under the Financial Emergency Measures in the Public Interest (No. 2) Act 2009 to modify the reduction in salary. This avoided applying a total reduction in remuneration for these grades which would have been greater than those for other public servants including higher paid groups at the level of Secretary General or above. The resulting adjustments including the effect of the termination of the scheme of performance-related pay produced significant reductions in remuneration of 14% in the case of the grade of Deputy Secretary (or of over 27% when the effect of the pension-related deduction is included) and 11.8% in the case of the grade of Assistant Secretary (or of over 24% when the effect of the pension levy is included).

Having regard to the decision taken by Government at its first Cabinet meeting to reduce the salary of the Taoiseach to €200,000 and apply a pro-rata reduction to all members of the Government, I am reviewing the salaries payable to the highest paid public servants and intend to bring proposals on this matter to Government shortly.

The proposals being pursued by my colleague the Minster for Enterprise, Jobs and Innovation are aimed at securing appropriate reform in those wage-setting mechanisms which affect key sectors of our economy, in order to protect existing jobs and encourage employment growth, in accordance with the terms of the EU/IMF programme. I understand that he intends, following completion of discussions with relevant parties shortly, to submit a final action plan for consideration by Government before the end of the month.