At last it appears an air of realism is permeating Government circles on the issue of pay for those leading the Republic's commercial State companies. A report by Hay Consultants recommends significant pay increases for many of those in positions of chief executive at these companies and, after being left on the shelf for some time, is now under active consideration.

Of course, there will be those who say that the report, if accepted, will only serve to raise the public service pay bill and, indeed, encourage staff in these companies to press for pay awards on the back of such rises for senior executives. That is to miss the fact that these companies are currently finding it difficult to recruit executives with appropriate skills and experience to lead our commercial State enterprises into a world of increasing competition and even privatisation.

This is exactly the position several of these companies have found themselves in recent years. Aer Lingus, Telecom Eireann and the VHI are among those which have already had to find a way around existing guidelines via special contracts to attract suitable candidates. Then there was the much-publicised row between the board of ESB and the Minister over a package for its new chief executive.

Where the old guidelines apply, chief executives bearing ultimate responsibility for company performance are finding themselves less well rewarded than some of their subordinates. This is unacceptable if these companies are to be commercially successful. Employees might also consider when pressing for commensurate awards that, without top-drawer executives, all their jobs may be more at risk in an increasingly competitive world. Bear in mind, too, that with enhanced pay come enhanced responsibilities. Few in the public service appear willing to accept the latter.