Seán Fleming (Laois-Offaly, Fianna Fail)
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14. To ask the Minister for Public Expenditure and Reform his views on the payment of bonuses and incentive pay at Irish Water and other semi-State agencies; and if he will make a statement on the matter. [42046/14]

Brendan Howlin (Wexford, Labour)
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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.

The requirement to cease such forms of bonus payment together with other basic salary reductions introduced by this Government in respect of the CEOs in State Companies was necessitated by the very difficult financial and economic circumstances facing this country.  The Government will accordingly continue to consider future policy developments in relation to performance related pay for the CEOs concerned in the light of prevailing circumstances.    

I have no role in relation to the Performance Related Award Schemes for staff below CEO level in Commercial State Companies.  

It is expected that the Boards of these organisations act responsibly in designing and implementing pay structures that drive performance in the competitive environment in which they operate, while ensuring that they are fully compliant with Government pay policy.  In view of the fact that Irish Water is a newly created monopoly entity, it will be important that the organisation actively demonstrates that it is performing well for the people it serves before any additional award system can be shown to be  merited. 

With regard to the Non-Commercial State Companies, 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.