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Dáil
‹ Ceisteanna ó Cheannairí - Leaders' Questions

Semi-State chief pay rises

Summary

Deputy McDonald criticises large pay increases for semi-State CEOs, contrasting them with ordinary workers' wages. The Taoiseach defends the Government's approach through public service pay agreements and budget priorities, while the exchange is interrupted by procedural comments and a heckle.

The Government has approved big pay hikes for CEOs of semi-State organisations and the pay increases are substantial. The pay packet of the head of CIÉ is up by €35,000. There is a €60,000 hike for the CEO of the Irish National Stud, a €50,000 pay bump for the chief executive of Bus Éireann, a €75,000 hike for the head of Iarnród Éireann and it has also been reported that a pay increase has been sought for the RTÉ director general, which would bring the salary package for that position close to €300,000. I think we can agree that is good news for the CEOs of semi-State bodies.

The contrast with the Government's treatment of working households could not be more stark. These are households, workers and families who count every euro just to make ends meet. Some 1.4 million workers in this State earn less than €45,000 per annum. Can the Taoiseach imagine their disbelief when they see the Government increase the salaries of semi-State CEOs by €60,000 and €70,000, increases far higher that which is earned by those who keep the country going, such as young nurses, gardaí and teachers, those who work in retail, factories and hospitality, cleaners and carers. There is no big pay hike for them. On the contrary, the Government's bumper budget of €9.4 billion abandoned those working people and, in fact, left them worse off. The Government could not find the money to give ordinary workers a break in their income tax. There was no money for a cost-of-living package, no money for an increase in the renter's tax credit, no money to maintain energy credits as electricity bills go up and up and no money to cover the extra cost of living with a disability. The Government left people with disabilities €1,400 worse off, but it could and did find the money for generous tax breaks for developers, landlords and banks and now we know it found the money to deliver bumper pay increase for top brass semi-State executives. Where is the fairness in that?

For many workers, wages have been outstripped by relentless price hikes. The daily struggle of low- and middle-income workers to keep their heads above water, look after their children, pay their bills and put food on the table is very real, but the priorities of Fine Gael and Fianna Fáil in government are clear.

The Taoiseach, Fianna Fáil and Fine Gael will always show up for those at the top. Meanwhile, ordinary working people are taken for granted, brushed aside and short-changed over and over.

Níl fadhb ar bith ag Fianna Fáil agus Fine Gael ardaithe móra pá a thabhairt do phríomhfheidhmeannaigh i gcomhlachtaí leath-Stáit, ach tagann siad le faic i gcónaí don chosmhuintir. Cá bhfuil cothrom na Féinne ansin?

The Taoiseach abandoned ordinary workers in his budget. Can he explain to them how he can stand over big pay hikes for semi-State CEOs when they do not get a red cent of a break on their income taxes?

Comment on this
Verona Murphy An Ceann Comhairle Independent

We have no clock. We have a problem for the moment but I am using a stopwatch here so I will give the Taoiseach a few seconds.

Comment on this

Having no clock is a gift to all Members of the House.

Could I say at the outset, ar dtús báire, ní aontaím in aon chor leis an méid atá ráite ag an Teachta. Níl aon amhras, sa bhuiséad a bhí againn le déanaí, go raibh muid ag súil go háirithe leis na daoine is boichte sa tír. Is iad príomhaidhmeanna an Rialtais ná níos mó tithe a chruthú, fostaíocht a choinneáil agus an méid fostaíochta sa tír seo a ardú. Tá sé sin á dhéanamh againn agus tá sé sin soiléir ó na figiúirí is déanaí atá tar éis teacht ar an bhfód. Is mian linn cabhair agus tacaíocht a thabhairt do dhaoine atá ag brath ar leas sóisialta, go háirithe leanaí, agus bhí sé sin le feiscint.

I do not agree with the Deputy's assessment of the Government's priorities. Our overarching priority has been to sustain a very strong and robust enterprise economy, and particularly employment, because the most effective thing we can do is to create opportunities for people to gain meaningful employment in this country. By any yardstick, we have achieved that as a Government over the past number of years. We have the largest ever number of people working in this country, with over 2.8 million people working. We equally have had substantial growth in the numbers working in our country over the past number of years. That is key in terms of living standards and enabling people to cope. There are 2.825 million workers and that is a record for the Irish labour market. There is an increase of over 550,000 people between 2020 and 2025. That is a staggering achievement. When Ireland is compared with other EU member states in respect of the creation of employment and a robust economy, I think you will not find an equal. Under the IMF, in terms of the world economic outlook, the Irish economy is the fastest growing among the world's most advanced economies.

That is why, in the budget, we focused on services and a substantial increase in allocations to education, disability and health. Those increases will make a difference and are making a difference in respect of those key areas. Looking at the analysis by the ESRI and others in respect of the investment in children, you will see that those on the lowest decile of income gained the most from the budget. That was our priority in the budget, particularly in regard to children and child poverty and the analysis bears that out.

Equally, in respect of disability, we have made substantial progress both in terms of a record number of additional special classes for 2026 and earlier notification so children can get appropriate offers at the appropriate time and so forth. There has been a 20% increase in disability services expenditure and that is where we have put the focus.

There has been a huge allocation for capital infrastructure in the budget and over the past number of years to deliver the water, energy and critical infrastructure needed to sustain the employment I spoke about earlier and to sustain our economy.

Real wage growth this year will be about 3%. Wages will increase by about 5.5% and with 2% plus of inflation that means real income growth. The growth in consumption expenditure will be more than 3%. That does not reveal the type of scenario the Deputy created.

We acknowledge there are cost-of-living challenges to people - there clearly are - but we have worked hard, through a range of supports and free schemes that I could list, from free books to hot school meals, that we have introduced to cushion people against the undoubted pressures of cost-of-living increases.

In relation to semi-State CEOs, the Deputy knows full well that an independent body got together. There had been few increases in recent times. It was becoming difficult to recruit people to key positions within the semi-State sector, which is important for the economy also. That underpins the figures the Deputy outlined.

Comment on this

The actions and decisions of the Government speak for themselves. It is clear for anybody who wishes to see precisely what the Government's priorities are that they are to look after those at the top. We saw that in the Government's €9.4 billion budget - landlords and developers - and now in this decision. It is a decision, approved by the Government, to increase the pay of CEOs.

Here is the point of contrast. Some 1.3 million workers, as I told the Taoiseach, earn €45,000 or less. That is half the workforce. I cannot believe the Government is, frankly, so tone deaf and detached from reality that it cannot see the profound unfairness in its actions. It gives pay hikes for one set of privileged workers and nothing for working people. That has landed badly.

Comment on this
Verona Murphy An Ceann Comhairle Independent

Thank you, Deputy. I call the Taoiseach to respond.

Comment on this

As we return for this new year, those families who struggled last year are struggling still on the Taoiseach's watch and he steps by and tries to argue that is not the case. They are living this reality.

Comment on this

As the Deputy knows, we have public service pay agreements, where we work with the social partners in agreeing on a regular basis. We have had effective agreements with the public service unions in respect of workers in the public service. We will continue to do that. Because of what have been very good outcomes in terms of the fiscal situation and surpluses that we have managed to sustain, that will enable us in future budgets in terms of personal taxation and so on.

We decided in the last budget to invest in services. I would have thought that is something the Deputy's party would want us to do. There would have been a time when the Deputy would have argued for that but she keeps flip-flopping all over the place in terms of her policies. I do not know where Sinn Féin is coming from or going to in respect of any sustained consistent policy or philosophical position in terms of where Irish society should be. We are investing in services. We make no apology for investing in special education or in disability services and we make no apology for investing in childcare or, indeed, disability and other services and particularly in infrastructure, which we need to do for the future of this society and the economy.

Comment on this
Conor D McGuinness Deputy Conor D. McGuinness Sinn Féin

Keep saying it; you might believe it.

Comment on this