THE GOVERNMENT is not to review pay scales for the chief executives of commercial State bodies, despite a review of other pay levels in the public service.
The Government has asked the Review Body on Higher Remuneration to look again at pay levels at the top of the public service and for senior figures in the non-commercial State sector. It has asked it to take account of rates in comparable EU countries, as well as the context of the budgetary and economic crisis.
A spokesman for the Department of Finance told The Irish Times there were no proposals to review pay levels for chief executives in commercial State bodies.
The Government last examined the issue of pay scales in the commercial State sector in early 2008 when it sanctioned significant pay increases. In most cases the precise pay levels for chief executives in commercial companies is set by their individual boards. However, the cabinet approves pay ranges for these positions.
In recent months a number of chief executives in commercial State bodies such as ESB chief Padraig McManus have taken cuts in their salaries.
In 2008 the Government approved higher pay ranges for chief executives in companies such as ESB, CIÉ, RTÉ, VHI and An Post on foot of a report drawn up by external consultants.
The report, compiled by the Hay group, found pay levels of chief executives in some of the larger commercial State bodies was lagging nearly 20 per cent behind the private sector average.
It also stated that in practice the pay of chief executives in the commercial State sector was 14 per cent behind the market average.
The Hay report on the commercial State bodies represented one of three external analyses of pay levels in the overall public sector commissioned around the same time by the Government.
The benchmarking body examined pay for lower and middle-ranking staff in the civil service, local authorities and health sector, while the Review Body on Higher Remuneration looked at the issue for those at the top of the civil service and the non-commercial State organisations.
Meanwhile, it has emerged that the new examination of pay at the top of the public service being carried out by the review body will not be completed until September.
This review was due to be completed next month, but following a request to the Department of Finance this deadline has been extended to the end of September.
Minister for Finance Brian Lenihan said in his budget speech in April that he believed “pay at leadership levels in the public sector should be more in line with pay in other countries, rather than with top level private sector pay in this country”.
Up to now the pay comparison reports have largely based their comparisons on comparable positions in the private sector in Ireland.
