Information given to Deputy O'Dowd through a series of parliamentary questions indicates a bonus culture exists within elements of State agencies and some Departments. This creates an enormous credibility problem. Outrage was felt across the country at the proposal to pay bonuses to bankers in particular areas. The Minister for Finance, after a degree of consideration despite the advice of the Attorney General that claimed nothing could be done about the bonuses and which the Minister put on the record, did a solo run and rightly stopped their payment. Today's newspapers indicate a bonus culture still exists in State agencies and Departments, however.

In 2008 the Minister for Finance issued a circular stating this bonus system should cease. From the majority of parliamentary replies to Deputy O'Dowd on this matter, it seems to have been applied in all Departments expect the Department of Finance and several State agencies. In 2009, performance related bonuses were paid to the chief executive of the National Treasury Management Agency, amounting to €200,000, to the chief executive of the Personal Injuries Assessment Board, amounting to €31,000 and to the chief executive of Horse Racing Ireland amounting to €40,539.

These payments present a credibility problem. Last week's budget, presented as fair and equitable, asked ordinary public servants, be they teachers, gardaí, nurses, cleaners or carers, to take salary reductions and pay more levies and taxes. Now they find in some areas of the public sector that a bonus culture is alive and well. It is as if a separate club exists.

Will the Taoiseach confirm this bonus culture will be ended across the public sector and the Civil Service? As the Minister for Finance has direct control over the pay of senior civil servants above the level of assistant secretary, how does he propose to end this bonus culture which has caused outrage and separation within public sector ranks? Have the proposals in the Minister's 2008 circular been implemented? What does the Taoiseach propose to do about the information given to Deputy O'Dowd on bonuses in certain areas?

It is important to make a distinction in these cases. It is not correct to conflate the banking sector bonus system, in which a large, additional to basic pay, discretionary bonus based on meeting certain objectives was in place, with payments to middle-ranking public servants at principal officer and assistant principal level.

In 1994, the programme for competitiveness and work provided for a 1% pay increase for people at that level. In some Departments it was incorporated into the full pay pot for those grades while in others it was used to recognise work of exceptional merit. This is against the background where those grades have seen a reduction in their pay of 17% through Government decisions. It is important not to conflate those two issues as being the same, as they are not.

The special service payment in the Department of Finance was based on criteria concerning special demands of the job or whatever occurred in a previous year. The average payments were between €2,000 and €2,500 per year. That should not be conflated with bank bonuses.

These payments are bonuses.

No, they are not. They are part of the overall pay bill.

They are called bonuses.

Will the Taoiseach explain why they are called bonuses then?

One has to apply for them.

Will the Deputies please allow me to explain?

Deputies, please allow the Taoiseach to continue without interruption.

This applies to middle-ranking public servants. Under a previous pay agreement there is a certain pay bill aggregate for those grades. As part of that pay award at the time, back in 1994, in some instances it was incorporated into the full pay bill. In other words, part of the full pay bill of that grade was incorporated as part of their pay rate. In other instances in the Department of Finance, 1% of total pay in that grade was used as a means of doing so.

What bonus did the carers get?

Last year, for example, some people obtained a special payment on that basis. That is the position regarding that matter. The total special service payments and seniority payments together amount to 1% of that Department's payroll, which is against the background of a 17% pay cut for those grades. To conflate that with what has been happening in the banking sector is not to compare like with like because it is not a discretionary payment.

They are still bonuses.

At higher grades — Secretary General and assistant secretary general level — those were discontinued because 10% of the total pay bill was involved in that situation.

With regard to non-commercial semi-State bodies, the decision on such payments is a matter for the boards themselves and are often built into the contracts of the individuals concerned. As regards those schemes, the Department of Finance wrote to Departments about performance-related payments for chief executives or other senior staff of non-commercial bodies and agencies, indicating it would be appropriate that consideration of bonus payments should be suspended. That remains our position and it will be followed up.

Has it happened?

It has happened in the vast majority of cases.

I have no problem with public servants being fairly and equitably paid. Those salaries should be accounted for as well as being in line with best practice. Within the ranks of the public service itself, however, there is outrage at the apparent — and, in some cases, proven — level of performance-related pay or bonuses allocated to particular sectors and particular individuals in some sectors. That is what is causing real anger because people were told by the Minister for Finance that the budget was fair, equitable and just. They do not see that, however, because carers and others looking after those with mental health problems at the lower levels are being asked to pay increased taxes, levies and charges of one sort or another. They also see evidence of serious money being paid, either as performance-related increases or bonuses, to particular individuals. That is what is causing the problem.

The Minister for Finance sent out a circular about this. I am glad the Taoiseach has confirmed that the practice has been discontinued at assistant secretary, deputy secretary and Secretary General levels. In respect of the Department of Finance, are these discretionary bonuses that are paid by the Minister for Finance? I understood that any individual from the rank of principal officer upwards in the Department of Finance is graded higher than an equivalent category in any other Department. Are these discretionary bonuses that are paid by the Minister for Finance?

Can the Taoiseach confirm that, in accordance with the circular issued by the Minister for Finance, there is an end to the bonus culture in the semi-State agency sector? It appears as if that is not the case. Some of the payments that have been made are extraordinary. I do not know whether the payment made in the Dublin Airport Authority, the harbour authorities or CIE were discretionary ones.

The Deputy is taking an inordinate amount of time on this subject.

Can the Taoiseach confirm that the payments were discretionary on the instruction of the Minister or by the agency involved? There is complete confusion about these payment levels.

As I have advised the House previously, there is limited time for Leaders' Questions.

It would be worth the Government's while to have a complete review of higher public servants' pay in respect of it being equitable, accounted for and transparent. The current situation is not transparent and causes more hurt and anger among ordinary public servants who do their jobs diligently every day, yet find themselves facing more levies, charges and increased taxes. Meanwhile, they can see and read about exceptional bonuses being paid to some individuals far up the line.

I have explained the situation regarding the Department itself but it is not correct to conflate that with what we have been discussing in recent days. It is part of the existing pay pot of those departmental grades. As was the case in many public service pay review recommendations, it concerns how one can incentivise and recognise exceptional merit, far more modestly than what is suggested was happening in the banks. It is part of the existing pay pool. Other Departments incorporated it across the board into those departmental pay grades. The average was about €2,000 to €2,500, which is totally different than what we were talking about yesterday.

The boards of non-commercial semi-State bodies have a responsibility to ensure that is being done. The Minister issued a circular to that effect. I am checking it out to ensure that it is being dealt with properly across all those agencies.

The commercial semi-State sector has a commercialised agenda. It has commercial contracts to their boards, which have to be dealt with in that way. It is important, however, not to conflate what was happening with middle-ranking public servants with what was discussed yesterday.

The Taoiseach should talk to NAMA and see what it is paying.

The Taoiseach should haul them in.