Bonuses paid by commercial State companies and agencies are likely to come under renewed scrutiny following disclosures of widespread bonus payments in Irish Water and in the office of the Commission of Energy Regulation.
Senior management at Irish Water last night confirmed to the Public Accounts Committee that annual bonus payments for its 299 staff would average €7,000 per annum.
And the Committee also learned from the Commission of Energy Regulation that its staff were also entitled to bonus payments.
The managing director of Irish Water John Tierney said at last night’s hearing that the bonus payments were based on those offered at Bord Gáis, where its 300 employees receive bonuses which average at €7,000.
It was the second day on which executives from the new utility gave evidence about their set-up costs to an Oireachtas Committee.
Later this evening a two-day debate on a Fianna Fáil private members motion on Irish Water will conclude in the Dáil.
Last night opposition TDs charged that the Government had blocked the release of information about Irish Water’s set-up; had refused to make its set up subject to Freedom of Information legislation; and failed to monitor of the substantial amount of money which will be paid to consultants - €86 million in total.
Minister for Environment Phil Hogan has come in for particular criticism for his comments that he was not aware of the extent of bonus payments and he did not ‘micromanage’ Irish Water.
Last night, senior officials from the Department of the Environment confirmed Mr Hogan had not been briefed on the specific payments on consultancy.
At the PAC hearing last night, programme manager John Barry justified the payments of bonuses as a means of incentivising staff to optimum performance.
Payment of such bonuses is standard across most State companies and agencies, although they have been the subject of periodic criticism.
Board Gáis paid some €1.9 million in bonuses to 270 staff in 2011, averaging €7,240 per employee.
In the same year, the bonus payments in another State company the Dublin Aviation Authority paid an average of €5,290 in bonus payments to its 400 staff.
Separately, it emerged last night that the Department of Finance will itself spend some €5 million on external consultants next year.
The figures were disclosed at a meeting of the Oireachtas finance committee yesterday by Minister for Finance.
Sinn Féin finance spokesman Pearse Doherty last night said the figures were totally unjustifiable and contended the Minister had failed to explain how the monies would be spent.
“These figures represent a massive increase in public money being spent on external consultants. As we have seen in the past it is the usual suspects of accounting bodies and legal bodies who will benefit from these contracts,” he said.
