PUBLIC EXPENDITURE AND Reform Minister Brendan Howlin has admitted he has no role in relation to bonuses being paid to staff in semi-state companies below chief executive level.
Speaking during questions in the Dáil this morning, Howlin said that he has “no role” in relation to performance-related award schemes for below the level of CEO in commercial semi-state companies.
He said that boards of these companies are expected to “act responsibly” in designing and implementing pay structures as he faced questions from Sinn Féin and Fianna Fáil in relation to the recent controversy surrounding bonuses being paid out at the new utility company Irish Water.
Howlin was not able to specify what the minimum and maximum bonuses that will be paid in Irish Water, saying that questions on this should be referred to the Environment Minister.
Irish Water said last week that on average €7,000 on bonuses will be paid out, though none have been paid out to date.
He said that performance-related award schemes continue to be suspended on “an indefinite basis” for newly-appointed and incumbent CEOs in State companies.
Howlin said that the policy of no bonuses being paid, introduced in 2011, is to be reviewed annually but also added that “we should get back to performance-related pay”.
“It’s easy to make the notion of bonus as something that’s unacceptable,” Howlin said, adding that “performance-related pay is the norm in the commercial sector”.
He later said that the government expects all State companies to operate “in a commercial manner” but said the government has to “set moderation standards in all pay across the economy as best we can”.
He pointed out that he recently published a consultation document on performance-related pay and said that any structure would need to “set targets” and “have a fair and objective monitoring system”.
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