TOP LEVEL public servants including ministers should not receive pay increases, including those under any new national wage agreements, until at least 2012, a report commissioned by the Government has recommended.
The review body on higher remuneration found that generally speaking, in comparison with a range of EU countries, senior public servants in Ireland including the Taoiseach, members of the Cabinet and top-level civil servants were paid substantially more than counterparts abroad.
The review body report noted the Government is to suspend performance-related award schemes. It had recommended such a suspension, although it remained in favour of “moderate” performance-related award schemes.
The report maintained that the Government should “reconsider” the current system whereby public service pensions rise in line with increases paid to serving staff.
The report, which benchmarked top-level pay in Ireland against six other European countries, found the Taoiseach’s salary to be the second highest in the group – slightly behind Austria but significantly ahead of that of the other five heads of government.
It said that when adjusted to take account of the value of benefits such as pension and the provision of a car as well as income tax and purchasing power, the Taoiseach’s pay fell to third place in the comparative table, significantly behind that of the heads of government in the UK and Germany, whose leaders were paid 31 per cent and 21 per cent greater (on an adjusted basis) than Brian Cowen.
“However, the adjusted income of the Taoiseach is significantly ahead of that of the other four heads of government in the study. The adjusted income for the Finnish head of government, which was banded along with the Taoiseach, is only 75 per cent of that applying to the Taoiseach,” the report said.
Pay cuts for Cabinet members and top level civil servants in the Budget were based on the findings of the review body report.
The Government announced cuts ranging from 8 to 15 per cent in the pay of top level public servants. The Taoiseach’s pay is to be reduced permanently by 20 per cent to €228,466.
The review body recommended that the secretaries general of the Department of the Taoiseach and Finance should take a cut of 15 per cent. The Department of Finance said yesterday the secretaries general concerned had volunteered to accept a 20 per cent cut.
The six countries used by the review body for the purpose of international comparison included Austria, Belgium, Finland and the Netherlands. The review body said it included Germany because it was the biggest economy in the euro zone, and the UK because of its proximity, history, economic impact on Ireland and the similarity of its political, administrative and judicial systems.
The review body found the salary of a cabinet minister in Ireland was the second highest in the group of countries, slightly behind that of a member of government in Austria but ahead of rates in the other countries.
“The rate in Belgium was found to be 97 per cent of the Irish rate, whereas that for Finland was 84 per cent of the Irish rate.
“Comparison, on an adjusted income basis, places members of the Government in Ireland in third place, significantly behind their counterparts in Germany and the UK, which are, respectively, 27 per cent and 18 per cent ahead of the Irish adjusted income. The adjusted income for a member of government in the two countries with which the Irish position is banded – Belgium and Finland – is 88 per cent and 83 per cent, respectively, of the adjusted income for the Irish counterpart,” the report stated.
The review body used the post of administrative head of the ministry of agriculture in the various countries for comparative purposes (a post classified as secretary general – Level II in Ireland) and found the salary of the Irish position to be significantly ahead of those in the other countries.
It found the salary for the post in the UK was 78 per cent of the Irish rate, and in Finland, half that applying in Ireland.