Michael McGrath (Cork South Central, Fianna Fail)
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Question 129: To ask the Minister for Finance if he intends, in view of recent disclosures of salary and bonus information at the National Treasury Management Agency, to introduce greater transparency and ministerial control in relation to the remuneration, including bonus arrangements that apply at the agency; and if he will make a statement on the matter. [18893/11]

Michael McGrath (Cork South Central, Fianna Fail)
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Question 176: To ask the Minister for Finance in view of recent disclosures of salary and bonus information at the National Treasury Management Agency, his plans to introduce greater transparency and ministerial control in relation to the remuneration, including bonus arrangements that apply at the NTMA; and if he will make a statement on the matter. [18847/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 129 and 176 together.

Performance-related pay has been an integral part of the NTMA approach to remuneration, reflecting the approach to remuneration in the private sector organisations with which the NTMA competes for staff. At the same time, public sector organisations must operate having due regard to the wider public policy context, which includes general economic circumstances. Accordingly, it is my intention to examine the approach to remuneration in the NTMA in more detail in the coming months following consultation with my colleague, the Minister for Public Expenditure and Reform. I will then see what changes, if any, might be appropriate in relation to the remuneration of all staff in the NTMA, having regard to the changing economic circumstances of the State and the need for transparency in public expenditure. The legislation which established the NTMA in 1990 deliberately positioned it outside of the wider public service structures with operational freedom to negotiate market-competitive salaries so that it would have, for example, the flexibility to recruit specialists in mid-career from the private sector. Under the NTMA business model, its remuneration structure is such that there are no general pay grades and no pay scales and all staff are on individually-negotiated contracts.

This business model has allowed the NTMA to staff itself with the necessary technical expertise to carry out the financial and risk management functions which have been assigned to it by Government since its initial establishment as a single-function agency managing the National Debt. These additional functions include the State Claims Agency, the National Pensions Reserve Fund, the National Development Finance Agency and the National Asset Management Agency.

The NTMA Advisory Committee, the members of which are appointed by the Minister for Finance, formally advises the NTMA on remuneration, including performance-related pay, on an ongoing basis. The remuneration of the Chief Executive, including any performance related payments, is determined by me after consultation with the Committee. The Advisory Committee makes recommendations to the Chief Executive on the specific remuneration of the other members of the senior management team and on general remuneration policy in the NTMA.

It should be noted that the members of NTMA's senior management team waived their performance-related payments due for 2010 in view of the serious economic situation facing the country.

Turning to the point the Deputy raises regarding transparency, detailed information on salaries by salary band was furnished by the NTMA to my Department and included in my response to a parliamentary question from the Deputy last week. Similar information was previously provided to the Committee of Public Accounts. In addition, in line with the requirements of the Code of Practice for the Governance of State Bodies, full details of the remuneration of the Chief Executives of the NTMA, NAMA and NDFA will be published on an annual basis in the respective agencies' Annual Reports.