Other public body bosses expected to take salary cut

SEMI-STATES: SEMI-STATE CHIEF executives and local authority managers are expected to follow the Cabinet's lead and accept a…

SEMI-STATES:SEMI-STATE CHIEF executives and local authority managers are expected to follow the Cabinet's lead and accept a 10 per cent salary cut, the Minister for Finance, Brian Lenihan, has made clear.

Under the move, Taoiseach Brian Cowen's pay will fall from €285,000 to €256,500.

Tánaiste Mary Coughlan will be paid €220,000 rather than €245,324, while senior ministers' pay will fall from €225,195 to €204,000.

In his Budget speech, Mr Lenihan said: "Other public servants in leadership and senior positions may wish to consider whether it is appropriate for them to make a similar move in current circumstances."

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However, he went further last night in his post-Budget press conference when he said he would expect those "in command positions in the semi-states and local authorities would also give example, but that is a matter for themselves".

The changes will also affect all Ministers of State and Attorney General Paul Gallagher. Last night, the Ceann Comhairle John O'Donoghue announced that he will also take the voluntary pay cut.

The decision will now mean that the Dublin city manager, John Tierney, will earn approximately the same as the Taoiseach, while the long-standing parity existing between the Taoiseach and the Chief Justice falls by the wayside, unless judges also volunteer for a pay cut.

Last night, Government sources stressed that a separation of powers exists between Ministers and the judiciary and that the Minister for Finance Mr Lenihan would not be contacting anyone to urge them to follow the lead of Ministers.

Top civil servants in charge of government departments, known as secretaries general, have also volunteered to take the pay cut, but they will still be better off than the Ministers they serve.

In July, Mr Cowen ruled that Ministers would delay accepting a significant pay award from the Review Body on Higher Remuneration in the Public Service, following a widespread public outcry.

Senior civil servants, judges, the chief executives of semi-State companies and senior academics were also affected by the Government's decision not to implement the pay rises.

The Government then said that it would postpone acceptance of the pay award but that it would review the situation in September 2010 - though that seems highly unlikely to happen now.

Mark Hennessy

Mark Hennessy

Mark Hennessy is Ireland and Britain Editor with The Irish Times