Éamon Ó Cuív (Galway West, Fianna Fail)
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Question 59: To ask the Minister for Communications, Energy and Natural Resources if permission has been given to semi-state companies under the aegis of his Department to exceed the salary cap of €250,000 laid down by the Department of Finance for the remuneration of chief executives of State companies; the details of any permission sought; the details of any request or recommendation made by him for such permission; and if he will make a statement on the matter. [37213/11]

Pat Rabbitte (Dublin South West, Labour)
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As the Deputy will be aware, in June 2011, the Government agreed the introduction of general pay ceilings for future appointments to senior posts across the public service and for CEO posts in Commercial State Companies. A general pay ceiling of €250,000 was agreed for future CEO appointments to Commercial State Companies.

In capping the pay of new appointees, the Government's view was that applying a basic €250,000 cap would only affect pay rates above that figure. Consequently, the Government also decided to reduce the salary ranges that apply to CEOs, the effect of which is to moderate salaries in a proportionate manner while maintaining the "weightings" between each Company.

This approach has the effect of reducing the CEO starting salary for future appointments of all but one of the commercial bodies under the aegis of my Department to within the €250,000 salary ceiling. In this context, the starting pay for a new appointment to the post of CEO of ESB was set at €318,083.

The Government further recognised that there may be a small number of exceptions where the role is of substantial importance in the public service or a Commercial State Company and the person whose appointment is sought brings exceptional or scarce expertise and/or qualifications to the proposed role. Any such exceptions will be subject to the approval of the Minister for Public Expenditure and Reform. Future recruitment will be managed within these parameters.

I have not made any recommendations or sought permission to exceed the salary levels agreed by Government in respect of any commercial bodies under the aegis of my Department.