Deputy Jerry Buttimer has congratulated Minister Varadkar on successfully influencing the Chief Executive of Dublin Airport Authority to forego a performance related bonus for 2010.
Deputy Buttimer said “it was beyond comprehension that the board of Dublin Airport Authority made provision for a performance-related payment of over €106,000 for its Chief Executive. This at a time when passenger numbers are declining. The passenger numbers in Dublin, Shannon and Cork fell by 13% to 22.6 million last year.
“Well done to Minister Varadkar for holding firm on the issue. I am happy that the DAA had the sense to not proceed with the bonus payment at this time. In this economic climate it is incredible that a board of a semi state company should attempt to proceed with a bonus culture.
“I very much welcome the commitment by the Government that the issue of performance-related bonuses in semi-State agencies will be reviewed in the future. Public Expenditure and Reform Minister Brendan Howlin has announced the introduction of pay ceilings for higher posts across the public service, and for CEO posts in Commercial State Companies.”
The Government has agreed to the introduction of:
· a general pay ceiling of €200,000 for future appointments to higher positions across the public service;
· a general pay ceiling of €250,000 for future appointments to CEO posts within Commercial State Companies
Where legislative amendments are required to give effect to these decisions (i.e. for Statutory Office Holders such as the Judiciary) the Minister is to bring forward legislative proposals shortly to the Oireachtas.
Deputy Buttimer continued “while these provisions will apply to new appointments, the Government has given detailed consideration to the potential legal and contractual issues arising from the imposition of an immediate reduction of salaries on current incumbents (other than the Judiciary) whose salaries are in excess of the proposed salary ceilings. The Government has decided to seek, in the first instance, voluntary waivers of salary of 15%, or by a lesser amount if the application of the full 15% reduction would bring the salary levels of such individuals to below the proposed pay ceiling of €200,000 for the public service and €250,000 for CEOs of Commercial State Companies.”