The Siptu trade union has sought clarity on whether the head of the State-owned energy company Bord na Móna plans to repay money generated as part of a controversial €57,000 perk, which has been halted in recent months.
The union said staff at the company deserved clarity and accountability.
The Irish Times reported on Monday that the payment had covered benefit-in-kind taxes on chief executive Tom Donnellan’s health insurance and company car.
The payment was dropped from a new contract signed by the chief executive in April, the company confirmed.
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This came after fears, laid out in internal papers drawn up by the Department of Public Expenditure (DPER), that continuing the payment could cause public outcry.
In a submission to Minister for Public Expenditure Jack Chambers last February, DPER officials said that the payment was “unsanctioned”. They outlined that it “undermines the principle” whereby someone receiving a taxable benefit – such as a company car – is the one who pays the tax on it.
Mr Donnellan had been in receipt of the payment, alongside his salary of €225,000, since at least 2023.
The benefit – known as “grossing up” – “poses significant public perception risks,” the officials told Mr Chambers after a contract extension and higher salary were sought for Mr Donnellan.
“[The arrangement] was put in place without sanction, and amounts to an increase in remuneration of approximately €57,000 (25 per cent). If sanction were to be conveyed to continue this arrangement, it would legitimise the arrangement and consequently undermine public pay policy.”
In a statement, Siptu said it had raised concerns regarding revelations in The Irish Times regarding money connected to the Bord na Móna chief executive.
Siptu sector organiser Ted Kenny said: “In light of the story published today, we believe it is essential that clarity is provided on whether the CEO [chief executive] intends to return the money at the centre of this controversy. Workers deserve accountability and transparency at every level of the company, particularly at a time when their own future is being treated as an afterthought by both management and Government.”
