Peadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context

Question 120: To ask the Minister for Public Expenditure and Reform his views on the Institute of Public Administrations finding in its research paper Public Sector Trends 2011 that remuneration for senior management in the public sector is 7.7 times the remuneration of secretaries in comparison to Nordic countries where the remuneration for senior managers is 3.5 times the remuneration of secretaries; and if he will make a statement on the matter. [20301/12]

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

While comparisons of public servants' pay rates across different countries are difficult to achieve on a "like for like" basis, the best available figures are those published by the OECD as part of its "Government at a Glance 2010" report. I understand it is this data which the Public Sector Trends 2011 research paper draws upon for its conclusions in relation to international pay comparisons.

The statistics on which the OECD based its report predate the pay reductions applied on a progressive basis to all public servants, under the Financial Emergency Measures in the Public Interest (No. 2) Act 2010. The pay reductions applied to higher paid public servants under that legislation were based on the recommendations of the Review Body on Higher Remuneration in the Public Sector, which conducted a cross-country comparative exercise on pay rates for certain senior grades. On foot of that, the then Government cut the pay of the highest paid public servants by between 8% and 20%. In contrast, reductions in pay that applied to lower paid staff would have ranged between 5% and 5.5% approximately. It is important to note that the OECD data does not show Irish public service pay rates to be significantly out of line with other OECD countries across a broad range of disciplines on a purchasing power parity basis even though the data predates the implementation of the pay cuts.

The current Government, based on proposals put forward by me in June 2011, imposed further significant reductions in higher level pay in the public service. By way of illustration, taking account of the pension related deduction and the pay reductions applied cumulatively to the gross salaries of the comparative grades of Secretary General and Clerical Officer between March 09 and June 2011, the reductions effected amount to 32% at Secretary General II (40% at Secretary General I) Level but at clerical officer the level of reduction amounts to less than 9%. This excludes the impact of additional tax increases that apply to all workers in the economy which are also progressive.

I believe the Government has demonstrated a significant track record since coming to office of addressing higher remuneration rates in the public service including by way of referendum and will continue to ensure that the burden of fiscal adjustment, including the adjustment required in the pay bill, will be shared fairly across all income levels.