Written answers

Tuesday, 4 November 2014

Department of Public Expenditure and Reform

Public Sector Staff Remuneration

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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365. To ask the Minister for Public Expenditure and Reform if he has issued guidelines on the payment of bonuses and performance related pay across the public sector and the commercial semi-State companies; and if he will make a statement on the matter. [41235/14]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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No performance related pay is payable to civil servants or similar grades in other parts of the public service, since the termination of the scheme of performance related pay in 2009.

With regard to the Non-Commercial State Agencies, it is a matter of Government policy that Performance Related Award Schemes continue to be suspended on an indefinite basis.  Access to such schemes is no longer included in the employment contracts for newly-appointed CEOs or in contract renewals for incumbent CEOs.  It is a matter for parent Departments in the first instance to ensure that all bodies under their aegis are fully in compliance with Government pay policy in its application.  

In 2012 the Government reviewed the position on the payment of performance related reward schemes or bonuses for Chief Executive Officers in Commercial State Companies and agreed to continue with the policy which it introduced in 2011 of requesting the State Companies concerned not to award such bonus payments in light of the serious state of the public finances. Furthermore the Government agreed to continue with the practice of excluding the payment of bonus provisions in the employment contracts of newly appointed CEOs to such State Companies as well as in respect of contract renewals for incumbent CEOs.

I have no statutory role in relation to the Performance Related Award Schemes for staff below CEO level in Commercial State Companies.  The Boards and management of these organisations must ensure that pay and remuneration structures for staff are sustainable, reflect commercial realities, are structured to deliver real value for money, while driving performance and efficiencies within the organisation.

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