Michael McGrath (Cork South Central, Fianna Fail)
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510. To ask the Minister for Environment, Community and Local Government if the performance-related targets for Irish Water staff relate to collection of revenue; and if he will make a statement on the matter. [44167/14]

Alan Kelly (Tipperary North, Labour)
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Since 1 January 2014, Irish Water has statutory responsibility for all aspects of water services planning, delivery and operation at national, regional and local levels. Irish Water has established a dedicated team to deal with representations and queries from public representatives. They may be contacted via email at or by telephone on 1890 578 578.

The employment terms and conditions for Irish Water staff are a matter for the company and I understand that the particular pay model is something which was inherited from the parent company Ervia and therefore was not directly put in place by Irish Water. Like other commercial semi-state bodies, pay models are negotiated between management and unions and are then subject to a ballot as necessary. This occurred in Ervia’s case and the pay model was implemented in 2011.

Ervia has in place a competitive market based pay model, which offers market based pay ranges for all employees. Under the pay model salaries, below that of the Managing Director, are calculated by reference to the relevant median market rate. An amount is then deducted which is referred to as a Performance Related Award (PRA) which is an element of pay at risk. The remaining amount is the base salary.

As such, Irish Water does not pay increments or any form of automatic pay award; the PRA element of pay is only earned subject to performance. Every individual in Irish Water has a clear set of objectives set for the year and performance pay awards would be based on a structured performance review that requires company performance, business unit performance and individual performance metrics to have been met.

Irish Water has indicated to my Department that revenue outturn would have most immediate consequence for staff whose performance objectives are directly related to revenue collection, therefore impacting their individual performance review. Irish Water revenue collection performance would also be a factor in determining annual business performance in Irish Water and within the Ervia Group, thereby affecting the metrics associated with company and business unit performance which would impact on an individual’s performance review.

I have been advised by the Chairman of Ervia that the Board has decided that the PRA element of the Irish Water Pay Model should not apply for 2013 and 2014. In addition, the Board has decided that the Pay Model should be subject to an independent review and this is already underway.