The dispute between the Government and the ESB over the semi-state's incoming chief executive is still unresolved following a meeting between the Minister for Public Enterprise, Ms Mary O'Rourke and the ESB chairman, Mr Billy McCann yesterday. Ms O'Rourke has refused to sanction a £200,000 package for the ESB's incoming chief executive, Mr Ken O'Hara who was due to take up the post on Monday. She did so because Mr O'Hara's package was based on the Buckley report, which made recommendations on semi-state pay but which the new Government has deferred implementing.
The ESB board, which held a six-hour emergency meeting at the weekend to discuss the matter, has assumed Mr O'Hara's responsibilities until the matter is resolved. The ESB currently has no plans to hold a board meeting to discuss the issue again, but it is due to hold its regular monthly board meeting next Tuesday.
Ms O'Rourke and Mr McCann met for around half an hour yesterday. A spokesman for the Minister said the meeting had been amicable and Ms O'Rourke had "explained the situation as it stands in greater detail". The spokesman said both sides had "agreed to keep the lines of communication open", while the ESB said the meeting had been "amicable and interesting".
Under the Gleeson guidelines, which the Government insists must apply, Mr O'Hara's package would be around £105,000 a year, including bonuses.
If the Government maintains its position, which is likely, the board will have to offer Mr O'Hara the lower package pay deal. At that stage he will have to decide whether to accept it. If he does not, the board will have to re-advertise the post.
When the ESB advertised the post in January, it specified that the post would include a "a competitive remuneration" and benefits package for the right person. ESB sources say this clearly did not mean a Gleeson-style package.
Sources also said it had informed the then Minister for Transport, Energy and Communications, Mr Alan Dukes, in June that it was proceeding along the lines of the Buckley report and he did not demur. Mr Dukes was unavailable for comment last night.
ESB sources also said the Department would have been fully aware of the situation.
"The ESB was not working in isolation," said one source. The Buckley report allowed for higher remuneration rates, but also put far more emphasis on performance-related pay. It also recommends rolling contracts rather than fixed-term contracts.
Mr Dukes would have been informed of the remuneration plans been shortly before the general election. The Buckley report was published in March and was welcomed by the Fine Gael-led coalition, although not implemented.
Mr O'Hara's remuneration package, which was decided by a remuneration committee, must be sanctioned by the Minister for Public Enterprise. Under the 1988 Electricity Supply Amendment Act, the Minister for Finance, Mr McCreevy must also approve the pay deal.
A spokesman for Mr McCreevy said last night that the Minister's position remained unchanged. The Government had deferred implementing the Buckley report recommendations for the moment. The report recommends new pay rates for a number of other public servants, including judges and departmental secretaries.
It is understood that the ESB has mooted giving Mr O'Hara a personal contract along the lines of those applying to the chief executives of Telecom and Aer Lingus. However, Government sources have ruled this out.
