Government not planning to lift pay cap on airport chief

THE GOVERNMENT has no plans “at present” to consider lifting the €250,000 salary cap for the appointment of a new chief executive of the Dublin Airport Authority (DAA), Minister for Transport Leo Varadkar has said.

However, he told the Dáil the Government would have to “bear in mind” that the outgoing chief executive, Declan Collier, was leaving to run London City airport for a £410,000 salary plus bonus of 55 per cent to 95 per cent.

Mr Varadkar said the London airport had one-ninth of the passengers of the three State airports combined – Dublin, Cork and Shannon. The chief executive of Manchester airport, “a similar-sized airport to Dublin, receives a salary of £515,000 before bonus”.

“While there are a lot of people in the State who are paid more than their equivalents in other countries that is not the case when it comes to the CEO of the DAA.”

Advertisements have been placed in the media for a new chief executive to replace Mr Collier, whose contract ends in April.

Fianna Fáil transport spokesman Timmy Dooley asked during Dáil transport questions if the Government had considered lifting the salary cap.

He said the airport authority’s chairman told the Oireachtas transport committee he believed the salary cap would inhibit the search for a new chairman. Mr Dooley said the authority was self-sufficient and no taxpayers’ money was involved. He was concerned the authority might be constrained to appoint a “second-, third- or even fourth-rate” candidate rather than the best person.

However, Sinn Féin transport spokesman Dessie Ellis said “in this time of austerity I wouldn’t like to see the Government going beyond” the €250,000.

The Minister said “the Government has no plans at present to look at the pay cap, although the point Deputy Dooley makes is valid. The CEO is not paid by the exchequer.” The CEO is paid by the authority and “of course the higher the salary the higher the tax that is returned to the taxpayer, which is a point that many people don’t quite fathom”.