Written answers

Wednesday, 5 October 2011

Department of Finance

Public Service Pay

9:00 pm

Photo of Robert DowdsRobert Dowds (Dublin Mid West, Labour)
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Question 37: To ask the Minister for Finance if he has considered imposing a large additional universal social charge on the bonuses being paid to some senior public servants such as top civil servants and county managers; and if he will make a statement on the matter. [27389/11]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The issue of remuneration, which includes the granting of Performance Related Awards Schemes for senior public servants and county managers, is a matter for the Minister for Public Expenditure and Reform in the first instance. I am informed by my colleague, Mr. Brendan Howlin, T.D., Minister for Public Expenditure and Reform that Performance Related Award Schemes were available to certain posts in the following areas of the public service:-

1. Civil Service

2. Permanent Defence Forces

3. An Garda Síochána

4. Health Service

5. Local Authorities

6. A number of Non Commercial State Agencies

However, against the background of the deterioration in the public finances it was considered that such schemes were no longer appropriate. In this context the schemes for Civil Service, the Permanent Defence Forces, An Garda Síochána, the Health Service or the Local Authorities were suspended in 2009 (and no awards were made in 2009 in respect of 2008 performances). This remains the position.

Moreover, I do not believe that the tax code or, more specifically, the Universal Social Charge should be the preferred mechanism to deal with bonuses paid to senior public servants. If performance related bonuses are not justifiable or affordable they should not be paid in the first place rather than being taxed after the fact.

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