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Paul Murphy on Robert Watt 38% Pay Rise and Civil Service Review

Paul Murphy on Robert Watt 38% Pay Rise and Civil Service Review

Paul Murphy challenged a 38% pay rise awarded to Robert Watt and questioned further proposed increases for senior public servants. He criticised high pay rises for top officials while ordinary workers receive below-inflation increases and urged stronger redistribution measures.

Allegations over senior pay rises


The speaker cites the Secretary General of the department saying there was no clear process in deciding the 38% pay rise for Robert Watt and quotes him as saying — "I would rather there was a much more scientific process for this but there isn't." The rise is described as around 81,000 euros extra compared with the typical annual wage for most workers.

Concerns about further increases


Murphy highlights reports of potential additional pay increases of 10 to 15% for those earning over 150,000 euros, possibly due in July but subject to postponement. He directly asks the Taoiseach how such increases can be justified while most ordinary workers receive pay increases below inflation.

Policy alternatives and taxation


He argues for a publicly enforced maximum pay in the public sector and for above-inflation pay rises for ordinary workers in both private and public sectors. He also contends that the progressive income tax system and the Universal Social Charge (USC) are the most effective tools for redistributing income from very high earners.

Civil service renewal and external review


The minister has indicated a comprehensive review of civil service recruitment and pay, proposing an external review panel of three members with secretariat support to be provided by Deeper. Officials are examining terms of reference, scope and potential membership to strengthen recruitment processes and pay determination for senior public service posts.

Paul Murphy — moment from remarks: Paul Murphy on Robert Watt 38% Pay Rise and Civil Service Review (01.03.2022)

Legislative context and pay restoration


The speaker references the unwinding of FEMPI legislation under the Lansdowne Agreement (2016-2018) and the Public Service Stability Agreement (2018-2020). He notes that salary rates up to £150,000 — covering 99% of the public service — have been restored and that Section 20 of the Act requires completion of pay restoration for those paid more than £150,000 by 1 July 2022. DPERS is examining options for implementing the remaining restoration and will consult the Office of the Attorney General as required.

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Transcript
The Secretary General of your department is now on record as saying that there was no clear process followed in deciding to give a 38% pay rise to Robert Watt. To quote him he said I would rather there was a much more scientific process for this but there isn't. 81,000 euros extra more than the vast majority of workers earn in a whole year as a regular wage not a paying increase with no scientific process for it. Now we hear that further pay increases of 10 to 15% for those earning over 150,000 euros a year are possibly coming in July but may be postponed. Taoiseach, how can you justify such pay increases for highly paid officials while most ordinary workers are getting below inflation pay increases? Instead of pay rises for those at the very top, should we not have a maximum pay in the public sector in the public sector and instead have above inflation pay rises for ordinary workers in both the private and public sector? The most effective way to tackle high salaries is the income tax system which is progressive in this country which basically means that when you get to a certain level nearly over 50% is taxed. That really gets said in the debate but it is the reality as well. And that relates both to the USC which is particularly harsh or strong on those on very high incomes in addition to higher income tax rates as well. I think that is the most effective way in terms of redistribution of income from higher salary earners and a more effective way of doing things. In respect of the civil service renewal, Minister McGrath has indicated that he is going to undertake a comprehensive review of all of the issues in respect of civil service recruitment and pay. He is proposing the establishment of an external review panel to make recommendations to strengthen recruitment processes of senior public service posts and the process for determining the terms and conditions of employment. To ensure transparency and objectively in the process, it is proposed that the panel will consist of three members from different relevant backgrounds with secretariat support to be provided by Deeper. Officials in Deeper are currently examining the issues and will recommend terms of reference, scope of the review, potential membership of the review panel. And in the context of the potential or the unwinding of FEMPI legislation against FEMPI legislation is legislation that disarrocked this in previous iterations has already passed. But the process of unwinding the financial emergency legislation commenced under the Lansdowne Agreement, which was between unions and employers and the State, 2016-2018, covering that period. With the remainder of the process largely completed under the Public Service Stability Agreement of 2018-2020, which is a national agreement, the final elements of pay restoration have continued under building momentum, a new public service agreement, a new public service agreement for 2021-2022, salary rates up to £150,000, which account for 99% of the public service have been fully restored. Section 20 of the Act states that the Minister, by order, shall provide for completion of pay restoration to public servants paid an annual basic salary of more than £150,000 by 1 July 2022. In light of the consideration now being given to an external review to examine the processes and procedures around the recruitment of senior public servants, as well as the process for pay determination at senior levels, DPERS currently examining potential options around how and when this final element of restoration will be implemented. As restoration is provided for in legislation, this will require careful consultation with the Office of the Attorney General. НILAIN