Politics

State sector facing increased competition to secure staff for top level positions, says Donohoe

Minister defends establishment of new body but accepts it is ‘a sensitive topic’

Minister Paschal Donohoe defends establishment of new body. Photograph: Niall Carson/PA

Martin Wall
Emmet Malone
Thu Mar 7 2024 - 13:31

The Government’s move to commission a new pay review for the chief executives of commercial state companies is due to increasing competition to secure individuals for these posts, the Minister for Public Expenditure has suggested.

Speaking on Thursday Paschal Donohoe said there was a recognition within Government that there were “a small number of posts within our commercial and semi state sector that are really important to the delivery of very important projects within our country”.

The Minister pointed to top-level roles in companies in the energy sector.

He suggested that filling such top level positions was now taking place “in an increasingly highly-competitive context”.

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Mr Donohoe also said that “the competitive context for remuneration for some of those posts has changed”.

[ CEO pay at commercial State bodies including RTÉ likely to rise after review ]

“I appreciate this as a sensitive topic. But this is why I think it is (of) value to have an evidence based approach ... and this is why I think the process that we are putting in place is an important and timely one.”

Earlier this week the Cabinet agreed to the establishment of a new body – to be known as the Senior Posts Remuneration Committee – which will assess the pay of top level personnel in the public sector.

Mr Donohoe said on Tuesday that the first review to be carried out by the new committee will be of the pay of chief executives of commercial state bodies. This is expected to include an examination of remuneration of senior executives in organisations such as RTÉ, the ESB, VHI Healthcare and State-owned transport firms.

The new committee could subsequently look at the pay of other groups in the public service.

Last year an independent panel recommended to Government that a new pay body should look at remuneration provided to senior civil servants, judges, high-level gardaí and military personnel as well as hospital consultants.

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent

Emmet Malone

Emmet Malone

Emmet Malone is Work Correspondent at The Irish Times

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