New judges to face salary cut as part of public pay proposals

NEW JUDGES will have their salaries reduced under plans to cut the wages of highly paid semi-State chief executives and public servants.

Minister for Public Expenditure and Reform Brendan Howlin is likely to bring proposals to reduce pay levels for incoming members of the judiciary to Cabinet tomorrow. He will also put forward a plan to cap salaries paid to new chief executives of semi-State companies at €250,000.

“While Article 35.5 [of the Constitution] precludes the reduction in pay of currently serving judges, this does not apply to newly nominated judges. Proposals will be brought to Government shortly to facilitate a reduction in the rates to be applied to newly appointed judges,” Mr Howlin’s spokeswoman said.

Minister for Justice Alan Shatter will continue to pursue a referendum on judicial pay, as the programme for government states that priority will be given to “a referendum to amend the Constitution to allow the State to cut the salaries of judges in restricted circumstances as part of a general cut across the public sector”.

The previous government planned to bring in a 10 per cent reduction for new judges but the measure was never implemented.

Meanwhile, the €250,000 cap on salaries paid to chief executives of semi-State companies will only apply to new entrants, while incumbents will be asked to take a voluntary cut in wages. A suggested salary ceiling of €200,000 for senior public servants will also be proposed.

Contractual arrangements mean packages previously agreed with existing chief executives of semi-States cannot be tampered with, so a series of voluntary waivers will be sought by the relevant Government department where necessary.

Some chief executives are set to retire soon and the new rules will apply to their replacements. The chief executive of the ESB, Pádraig McManus, has announced his intention to retire. He earned a total package of €752,000 in 2009, of which salary was €412,000.

“Minister Howlin is giving consideration as to how best to effect reductions in the remuneration of senior public sector posts, including CEOs of commercial State companies, while acknowledging that there may be contractual issues in relation to the application of any cap to current incumbents and will bring proposals on the matter to Government very shortly,” his spokeswoman added.

Mr Howlin’s memo has been circulated to Cabinet colleagues and some departments have provided feedback on it. Minister for Communications Pat Rabbitte, Minister for Transport Leo Varadkar and Minister for Agriculture Simon Coveney are the line Ministers for most of the State bodies concerned.

“On assumption of office the Taoiseach, other members of the Government and a number of other officeholders have, in line with that commitment, voluntarily reduced their salary rates, with the Taoiseach’s salary now set at €200,000,” said Mr Howlin’s spokeswoman.

In his October 2008 budget speech, the late Brian Lenihan appealed to senior public servants to consider surrendering 10 per cent of their salary. He later expanded this appeal by asking others to make a similar move, referring specifically to those “in command positions in the semi-States”. While some responded on a voluntary basis, others did not.

Minister for Enterprise and Jobs Richard Bruton’s plans for controversial changes to the Joint Labour Committee (JLC) system will be brought to Cabinet on June 21st or 28th. Opposition to the changes within Government has come from some Labour Party backbenchers.

The National Women’s Council said Mr Bruton had not heeded requests for a meeting. Chief executive Susan McKay said: “It’s outrageous that Minister Bruton is excluding voices of workers and the women who represent a majority of those impacted by his proposed changes to JLCs”, she said.