Lucinda Creighton (Dublin South East, Independent)
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235. To ask the Minister for Environment, Community and Local Government further to Parliamentary Questions Nos 239 and 240 of 6 November 2014, if he will clarify that anything to do with the mechanics of the pay progression was never raised with his Department and there exists no advice or files referring to the model to be adopted; if he will confirm who is legally responsible for determining affordability with respect to pay progression to ensure no automaticity of pay progression commences once the pay freeze ends in 2016; and if he will make a statement on the matter. [43680/14]

Alan Kelly (Tipperary North, Labour)
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As stated in the reply to Questions Nos 239 and 240 of 6 November 2014, the employment terms and conditions for Irish Water staff are a matter for the company. I understand that the pay model is not a new model put in place by Irish Water but was inherited from the parent company Ervia. Like other commercial semi-state bodies, pay models are negotiated between management and unions and are then subject to a ballot as necessary, as occurred in Ervia’s case. The issue of pay progression is not a matter that would have been raised with my Department as it does not arise at present, given that a pay freeze is in place until 2016. Pay progression thereafter is not automatic and will be dependent on, inter alia, affordability. Affordability is a matter for Ervia and Irish Water.

My Department sought clarification on the Ervia pay model and I understand that it is a competitive market based model comprising two key elements – a market based pay range for all employees and a Performance Related Award (PRA) which is at risk. The total of these two elements add up to the external market pay level for any given job. Performance pay will be based on a structured performance review and requires company performance, business unit performance and individual performance metrics to have been met. I am informed that under this proven and modern pay structure Ervia’s total pay for any job does not exceed the market total pay for a comparable position. Irish Water does not pay increments or any form of automatic pay award.