2025-12-11

4. Deputy Mairéad Farrell asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation the status of the removal of pay ceilings for CEOs of Irish commercial State-owned enterprises; and if he will make a statement on the matter. [70885/25]

I would love to say more about whistleblowers but we must move on. This question is about the status of the removal of pay ceilings for CEOs of State-owned commercial enterprises.

The independent review panel on senior public service recruitment and pay determination processes was established in March 2022 and its report was published in June 2023. It found that pay determination of senior posts should consider best practice in terms of openness, transparency, accountability and the need for an objective evidence-based methodology. To this end, it recommended that an independent body be established to give independent advice to the Minister on remuneration arrangements for senior posts in the public service and CEOs of commercial State bodies, CSBs. It further recommended that a review of CEOs of CSBs be prioritised. On foot of this report, the senior posts remuneration committee, SPRC, was established by Government in March 2024 to provide independent and objective advice, supporting consistency and transparency in the pay arrangements attaching to senior roles across the public service. The SPRC was requested to perform a review of the remuneration arrangements for the CEOs of CSBs. Following Government approval, I published the SPRC report on 29 April 2025. The SPRC made a number of findings and recommendations. The report found CEO remuneration packages have fallen out of alignment with the market and that a transparent and robust framework for the regular review of CEO remuneration was required to ensure remuneration levels are set and remain at a level that is appropriate and equitable. The report outlines fair and appropriate remuneration as a key element in the recruitment and retention of CEOs, who are critical to the State's future development and economic performance. Having considered the report, the Government has agreed to implement a more structured approach to the remuneration of CEOs. A banded salary structure is being implemented for CEOs, which ranges from their current salary to the market median of the relevant band. In line with the SPRC findings in relation to increased flexibility for boards, it is a matter for boards to propose a point within the relevant band for the body. This is subject to governance and scrutiny. The approval of the relevant Minister is required and then my subsequent consent. There will be no backdating of any changes to pay. I have since written to my ministerial colleagues regarding the operational details.

It is unbelievable to me that being out of line with the market and being competitive only ever in this Chamber relates to those people who are on the highest income. It is never about competitiveness for low-wage workers. It is never out of line for low-wage workers. The Minister's decision to remove these pay ceilings has resulted in pay increases for CEOs of Bus Éireann and Iarnród Éireann of €50,000 and €75,000. Those are insane amounts of money. That is making millionaires out of CEOs at a time when people cannot afford childcare or housing. It shows how out of touch the Government is. Last year the CSO identified that in-work poverty was 5.9%. That equates to more than 145,500 people in employment who are living below the poverty line. What will the Minister do about their competitiveness and being out of line with the market?

On a wider point, the budgets we implemented this year and in recent years are progressive. That is reflected in the SWITCH model the ESRI has around low-income deciles. The two lowest income deciles have been where the concentration of supports has been in terms of our response from a social protection perspective and the changes around income tax I made as Minister for Finance. We received recommendations from the independent senior posts remuneration committee. It is important we have a structured way to set salaries within the State. That is why we have a banded structure based on the market median in respect of commercial State bodies. It is important we have that in the context of attracting people to run those companies, whether utilities or other State bodies, so that we drive performance. That is why there has to be a full assessment within the board and with the consent of the relevant Minister, in line with the wider focus on performance within State bodies.

I do not think the Minister can seriously come into this Chamber and say his budgets have delivered for people in poverty. One in five children is living in poverty under the Minister's watch, while 15% of the State's population is living in poverty. The Minister talks about an independent recommendation committee on the pay of CEOs in the top 1%. Where is his independent recommendation committee for people who are working, earning and living in poverty? It does not wash with anybody for the Minister to come into this Chamber and tell us the budget delivered for low-paid workers. The Minister has chosen instead to line the pockets of the top 1% of earners, increasing their pay by astronomical amounts of €50,000 and €75,000. Most people do not earn those amounts, let alone get an increase of that scale. What will the Minister do to ensure competitiveness for low-wage workers?

The Deputy saw the recent budget and the intervention we made around child poverty. It was a significant intervention on child poverty, the biggest in years. That was the child support payment and it was done with the engagement of the sector. We want to address the issues with child poverty in our country. The facts are clear about the €300 million-plus expenditure on child poverty measures next year to try to narrow the gap. The Government, led by the Taoiseach and his Department, has put a real focus on child poverty because of some of the statistics the Deputy referenced. This is separate and distinct from an informed decision made by a board assessing CEO pay. It is populist to pit one against the other.

It is not. Children in poverty.

Ultimately, we want utilities that have strong leadership and that are matched with the market median so we build an economy and State which can address child poverty and give people the support they require.

The Minister must know that narrative is what is causing this.