Senior Government sources say no decision has been made on the salary for the new housing “tsar” – but argue that the current Nama chief executive’s salary may not be carried over if he gets the role.
The Coalition has been firefighting over the expectation that Brendan McDonagh, the Nama boss preferred for the new role by Minister for Housing James Browne, would keep the €430,000 salary he earns at Nama if he moves to head the new Housing Activation Office approved by Government this week.
[ How a housing ‘tsar’ in waiting became a PR problem for the GovernmentOpens in new window ]
Mr McDonagh is officially an employee of the National Treasury Management Agency (NTMA), and has been seconded to Nama as chief executive since 2009.
It had been widely reported that if he were approved as head of the new housing delivery body, his salary would continue at the same level – leading to widespread condemnation as the position is paid almost €200,000 a year more than the Taoiseach earns.
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But now senior Government sources suggest that if Mr McDonagh were to end his secondment with Nama and return to the NTMA when the bad bank winds up at the end of the year, he could revert to a lower salary in line with what he was originally on when he worked there directly.
There is a belief that these terms could dictate the package he would be offered as chair of the HAO. However, a second Government source said his salary and terms would be decided by the NTMA.
The NTMA has not commented on the issue.
The matter is set to be further discussed on Thursday afternoon at a key meeting of the Cabinet’s housing subcommittee – although sources were cautioning on Wednesday night that no closure may be immediately possible.
It comes as the Irish Daily Mail reported on Thursday that Mr McDonagh would face a pay cut in returning to the NTMA if he didn’t get the job as housing tsar.
The issue of who leads the new body – and more particularly, what they earn – has dominated the political agenda and bogged down the Government’s attempt to bring a fresh impetus to the housing crisis.
Meanwhile, Minister for Public Expenditure Paschal Donohoe has defended the establishment of the Housing Activation Office, saying it was a good idea and it was one of the ways to increase the number of houses being built.
Addressing the salary issue, he said: “The salary is undoubtedly a matter the Government has to consider when you’re making an appointment to any role. But it’s all about a means to an end.
“We are so conscious that more homes need to be built, we’re so conscious of all the change that is taking place around the world and around our economy and in the midst of all that we need to meet a keen need of our society. And for me, not only am I willing to make the case for this office being part of how we deal with the issue, I’m willing to make the case for the person who’s leading that office when the Government makes the decision, which we’re working on doing at the moment.”
In the Dáil, Tánaiste Simon Harris insisted no decision had been taken on the appointment of a chief executive and indicated that the Cabinet sub-committee may not make that decision at today’s meeting.
Separately, Minister for Higher Education James Lawless aid the appointment of the new housing ‘tsar’ would not result in any extra spending of taxpayers’ money as he is already on the State’s payroll.
Mr Lawless said he fully backed Minister for Housing James Browne’s plan for a housing activation office.
“I think it is needed. We have all seen in our constituencies sites that are stalled, or land that was allocated for accommodation but are still green fields.”
He said the reasons for these projects being stalled ranged from no water connections, to no energy connections, or planning issues, or problems associated with zoning or rights-of-way.
“I share the growing frustration. We really need to move on,” he said.
