Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 248: To ask the Minister for Public Expenditure and Reform his plans to address excessive pay in the public and private sectors and in the sheltered professions; and if he will make a statement on the matter. [22181/11]

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 249: To ask the Minister for Public Expenditure and Reform if he will establish a top pay commission to examine pay and compensation levels across the whole economy and to establish key pay relativities across the public and private sector; and if he will make a statement on the matter. [22182/11]

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

I propose to take Questions Nos. 248 and 249 together.

I have no plans to establish a commission to examine levels of pay and establish key pay relativities in the private and public sectors of the economy. Apart from instances where statutory rates of pay apply, pay rates in the private sector are generally a matter for negotiation between individual employers and employees.

With regard to other sectors, the Government is committed to improving the competitiveness of the economy. In this regard the Government under the EU/IMF Programme is removing restrictions as follows. In the legal profession, establishing an independent regulator for the profession and implementing recommendations of the Legal Costs Working Group and outstanding Competition Authority recommendations to reduce legal costs; in medical services, eliminating restrictions on the number of general practitioners qualifying and removing restrictions on those wishing to treat public patients as well as restrictions on advertising; in the pharmacy profession, ensuring that the recent elimination of the 50% mark up paid for medicines under the State Drugs Payments Scheme is enforced. The implementation of these commitments are matters for the Minister for Justice and Equality and the Minister for Health respectively in the first instance.

My responsibilities in relation to pay extend to the public service where the Government has a direct role in the determination of pay rates as employer. Pay rates in the public service have already been reduced by up to 15% and a progressive pension related reduction applied through the Financial Emergency Measures in the Public Interest Acts of 2009. More recently, the Government accepted my proposals to introduce a general pay ceiling of €200,000 for future appointments to higher positions across the public service, a general pay ceiling of €250,000 for future appointments to CEO posts within Commercial State Companies and a voluntary waiver system of up to 15% for current post holders who have salaries in excess of the relevant pay ceiling.