Terence Flanagan (Dublin North East, Fine Gael)
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Question 172: To ask the Minister for Public Expenditure and Reform the position regarding an income cap on public sector and private sector workers; and if he will make a statement on the matter. [28277/11]

Terence Flanagan (Dublin North East, Fine Gael)
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Question 177: To ask the Minister for Public Expenditure and Reform if he will deal with a matter (details supplied) regarding the salaries of higher paid civil servants; and if he will make a statement on the matter. [28907/11]

Brendan Howlin (Wexford, Labour)
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I propose to take Questions Nos. 172 and 177 together.

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 and the Government has no direct input to that process. 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.

All new appointments to the Public Service are being made in line with the policy adopted by the Government on pay ceilings. New pay rates for Secretary Generals of Government Departments have been introduced effective from June 2011 with a maximum rate of €200,000. This represents a reduction of almost 30% on Secretary General Level I pay at September 2008 (€285,341). These new reduced pay rates will also reduce Exchequer pension costs into the future for those appointees. In addition, a significant number of existing incumbents of posts in the public service that attract salaries in excess of the general pay ceilings adopted by the Government have to date responded positively to the Government's request for a voluntary waiver of up to 15% of their salaries.