THE GOVERNMENT has been forced into an embarrassing clarification of the pay cuts that will apply to serving judges if the referendum on judges’ pay is carried in the autumn.
The proposed cuts have caused major anxiety among senior judges, who met during the week to discuss the issue.
Minister for Justice Alan Shatter informed Mr Chief Justice John Murray on Wednesday that serving Supreme Court and High Court judges would be subject to a 31 per cent pay cut, in line with reductions in the pay of top civil servants and semi-State executives.
However, in a clarification last night by the Department of Finance, it emerged serving senior judges will take a 23 per cent reduction in pay rather than the 31 per cent cut that will apply to salaries of new judges.
While new judges will be subject to a 31 per cent reduction on the existing salary, in line with the pay cuts for new entrants to the public service outlined in last December’s budget, that cut will not apply to serving public servants or serving judges.
The Irish Times has learned that judges of the High and Supreme Courts met during the week to consider the Government proposals on reducing judges’ pay, which were conveyed in an e-mail from Mr Shatter to the Chief Justice on Wednesday.
They have now been clarified by the Department of Finance and are not as severe as initially indicated.
The proposals as they now stand would see the see the salary of the chief justice cut from €295,916 to €227,168, while that of the president of the High Court would drop from €274,779 to €211,088.
The salary of a judge of the Supreme Court would be cut to €198,226 (from the current €257,872), and that of the president of the Circuit Court to €191,794 (from €249,418). A judge of the High Court would see their salary drop from €243,080 to €186,973.
Judges are concerned about the lack of consultation in relation to the new pay rates. They are also exercised about new taxation arrangements that will apply to those of their number who retired with pension pots of over €2.3 million.
It is understood some judges have discussed the possibility of retiring in protest at the new arrangements.
However, the convention that debars former judges from returning to practise as barristers in the courts is a disincentive to early retirement.
Judges in the High and Supreme Courts have a retirement age of 72 and qualify for a full pension of half their salary and a lump sum of 1½ times salary after 15 years of service.
In a statement last night the Department of Public Expenditure and Reform clarified the new pay rates that will apply if the referendum is passed in October.
The statement said the rates for new judges reflected pay reductions equivalent to those taken across the public sector, the pension levy, plus an additional cut of 10 per cent that has been applied to new entrants across the public sector.
“Given that a constitutional amendment is required to reduce judicial pay, until such an event occurs, current incumbents’ pay is protected by the Constitution. In the event of their appointment to a different role where the salary rate is currently above the proposed ceiling their pay would not be increased.”
The statement said the department could not pre-empt the outcome of any referendum on a constitutional amendment, which was a matter for the Minister for Justice.
“Subject to the passing of the referendum, the application of these reductions would result in a range of reductions for incumbent judges of 16 per cent up to 23 per cent.” The higher rate will apply to Supreme and High Court judges with a 20 per cent cut for Circuit Court judges and 16 per cent for District Court judges.
It added the Revenue Commissioners had made provisions to facilitate voluntary cuts by judges to reflect the pension levy applied to public servants, but this was an individual matter between members of the judiciary and Revenue.