Ahern says Cabinet will not reject pay increases

Taoiseach Bertie Ahern has dismissed speculation that the Cabinet will defer or reject pay increases recommended by an independent…

Taoiseach Bertie Ahern has dismissed speculation that the Cabinet will defer or reject pay increases recommended by an independent pay body for politicians and higher civil servants.

The sums decided upon by the Review Group on Higher Remuneration will add €38,000 to Mr Ahern's salary - bringing him to €310,000 and making him Europe's best-paid leader.

Defending the increase yesterday, Mr Ahern said the independent pay body should report every three years, rather than seven years as it did now because the increases looked too large.

"Because it is a long period, the increases always look cumulatively high, and there is no doubt about it. As I have said previously, I wish it was a shorter period, it would look better," he said.

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Dismissing reports that ministers could reconsider accepting the pay rises when the Cabinet met today, Mr Ahern was definitive: "It will be implemented over the next two years and that's it.

"Governments can defer these things for a period and then, as they have previously done, go back and pay it all again. That's really only playing smokes and daggers with it.

"The fact is that this will ultimately be paid and it is better for Government to be up front about it. It will be paid on a phased basis over two years and that's it. It looks large and I accept that. I think the idea of deferring it, or trying to con people or something like that, is not realistic.

"In other words, I am not dodging it. It is a high increase. It is going to be paid, and that's it," said Mr Ahern, speaking at the official opening of the Peter Bradley Foundation Residence in Glasnevin, Dublin.

A spokesperson for Minister for Defence Willie O'Dea last night rejected suggestions that he had given signals during an interview with RTÉ's The Week in Politicsthat the issue could be revisited at today's Cabinet meeting.

Minister for Health and Children Mary Harney said there was "a lot of misunderstanding" about the Higher Body on Remuneration's findings, which have come seven years since the last review and which will be phased over two years.

"It's going to be phased in between now and 2009. I'm not sure anybody in the public realises that it's not going to be fully paid until 2009 and in fact I would suggest a lot of journalists don't realise it's not all going to be paid immediately . . . I don't know whether it's going to be discussed at the Cabinet tomorrow. If it is I will give my view at the Cabinet".

Fine Gael TD Richard Bruton said the Taoiseach and the rest of the Cabinet should not accept the pay rises "until matching reforms, efficiency gains and service improvements have been delivered".

The pay body's report was based, he said, on a false premise. "It has decided that the achievements of benchmarks to clients and taxpayers should not be a core part of the pay setting mechanism in the public service.

"This leaves it to decide top pay levels solely on some measure of the burden of their office. This is missing the point. The value of a manager is not measured by the stress she endures but by the results she delivers.

"It is a great burden to manage a struggling team in the third division, but who would suggest that he should be paid the same as Alex Ferguson?" asked Mr Bruton.

Mark Hennessy

Mark Hennessy

Mark Hennessy is Ireland and Britain Editor with The Irish Times