Salaries of heads of semi-States to be reviewed

THE PAY scales of chief executives of the commercial State-sponsored bodies are to be reviewed by the Government, Minister for Finance Brian Lenihan has told the Dáil.

Mr Lenihan said he remained concerned about the pay at top levels across the economy.

“I propose to bring proposals to Government at an early date to review the arrangements governing the pay of chief executives of the commercial State-sponsored bodies.’’ Mr Lenihan said pay cuts among staff in bodies like Bord Gáis and the ESB would have no impact on the public service pay bill because pay was funded through their own commercial efforts. With the exception of chief executives, the Minister did not control the pay of staff, and they had not been covered by the public service element of pay rounds in the past.

An independent approach to controlling their pay bills had been taken, as happened in RTÉ where voluntary reductions were agreed, said Mr Lenihan. There had been a number of voluntary redundancy schemes in the ESB.

“While these companies must be allowed to act commercially, and in accordance with the normal industrial relations process, the Government is of the view that pay restraint in these companies fulfils a longer-term national interest, namely ensuring competitive pricing for energy and other goods,’’ he added.“But it is the market and the regulators that will impose that discipline upon those bodies.’’

Mr Lenihan was introducing the Financial Emergency Measures in the Public Interest (No 2) Bill, giving effect to the Budget’s reduction in public service pay.

He said the cost of providing public services had to be reduced to bring it in line with sustainable revenue levels.

“Without any correction, day-to-day spending next year would be about €58 billion, an increase of €2 billion over this year. This is simply not sustainable.’’

He revealed that the secretaries general of the Department of the Taoiseach and the Department of Finance had volunteered to take a pay reduction of 20 per cent, although a reduction of 15 per cent was recommended by the review body.

Mr Lenihan repeated that the Government wanted to continue dialogue with the public service unions to deliver the change that both sides knew was needed.

A public service that was highly productive, applied world-class technology and adapted constantly and flexibly to underpin the smart economy and sustain full employment and high living standards across the whole community was required, he said.

“It will be a service where the performance of organisations and individuals is better managed and where there is greater accountability, especially for managers,’’ he added.

Fine Gael finance spokesman Richard Bruton said the only cut of any substance the Minister was taking was in the public sector pay bill. “You asked those on the lowest pay to take, proportionately, the biggest cut in their take-home pay.’’

Labour leader Eamon Gilmore said the Bill was unjust because it was enabling Fianna Fáil “to loot the incomes of public servants in order to pay for the mess they have made of our economy’’.

The Government, he added, was raiding the pockets of nurses, gardaí and hospital cleaners to pay for the crisis their favoured treatment of property developers and bankers had landed the State in.

“Cutting public servants’ pay is the easy option,’’ said Mr Gilmore.

“It avoids the need for a forensic examination of Government waste, duplication of services, and over-arching patronage over the past 12 years.’’