TAOISEACH ENDA Kenny has criticised the failure of the chief executive of the State forestry board Coillte to take a voluntary 15 per cent pay cut as sought by the Government.
Speaking on Saturday night, the Taoiseach said he was “very disappointed” that the company had yet to accede to the Government’s request for a voluntary cut of 15 per cent in the salary of its chief executive David Gunning.
Separately, Minister for Communications Pat Rabbitte yesterday said he regretted that Mr Gunning had so far not agreed to the Government’s request.
“We’re in a different place and different circumstances from when those contracts were agreed to or entered into.
“There are so many ordinary people finding it difficult to make ends meet that I think it would be appropriate for everybody at the top of the public service to be seen to make a contribution. I think it’s regrettable that Coillte is the odd one out. I hope he’ll comply, and I would expect him to.”
Fianna Fáil Seanad spokesperson on agriculture Senator Brian Ó Domhnaill called on Mr Gunning “to act responsibly”.
“It is totally unacceptable in the current economic circumstances that any CEO of a semi-State organisation would not, at the very least, take the 15 per cent pay reduction being requested by the Government. This attitude is mind boggling at a time when many families are struggling due to severe financial pressures as Christmas approaches.”
Mr Gunning is the only chief executive in the commercial State sector earning more than €250,000 who has not yet agreed to the Government’s request for the voluntary pay reduction.
Last May Minister for Public Expenditure and Reform Brendan Howlin asked the chief executives of commercial State companies to take a voluntary 15 per cent pay reduction in cases where they were paid more than €250,000.
Mr Gunning was paid a salary of €297,000 in 2010.
In a statement on Friday Coillte said: “No decision has been taken to date in respect of the voluntary waiver.” The company did not comment yesterday.
The Government set €250,000 per year as the new maximum salary level for commercial State company chief executives who are appointed in the future, with the exception of the ESB. However, it said that in light of legal and contractual issues it could not introduce compulsory pay cuts for serving chief executives.