Timmy Dooley (Clare, Fianna Fail)
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Question 677: To ask the Minister for Transport, Tourism and Sport his policy on pay caps for chief executives in semi-State agencies under his remit; and if he will make a statement on the matter. [14104/12]

Leo Varadkar (Dublin West, Fine Gael)
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In light of the ongoing severe economic conditions facing the country, it is Government policy that there is a need for leadership to be shown by those who hold high office across the public sector in relation to pay restraint within the sector, including the application of the pay caps announced by Government in June of last year. These included a general pay ceiling of €200,000 for future appointments to higher positions across the public service and a general pay ceiling of €250,000 for future appointments to CEO posts within Commercial State Companies.

In a small number of cases exceptions may be necessary. Such exceptions will be limited to instances where the exception is for a role 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 are subject to the prior approval of the Minister for Public Expenditure and Reform. I have not to date sought such an exception for any appointment relating to the State agencies for which I have responsibility.

The Government also sought voluntary waivers of 15% of salary from incumbent CEOs who are earning in excess of the above ceilings, or a lesser amount if the application of the full 15% reduction would bring the salary levels of such individuals to below the relevant pay ceiling.