A Christmas Present for Senior Civil Servants

[cyberianpan]

To reward competence, not FF/PD/FF-lite appointees like we see today.

Indeed

Though I'd point out that setting up a "Human Performance Management System" is challenging for private companies... and the lack of a market discipline(profits impetus) makes it even harder for the public sector. Even with the best of intentions they can set targets which prove counterproductive (e.g. see here)

That said there are some good global examples from the not-for-profit (but still private) sector which they could look at

In the private sector performance based pay can be a real spur and sharpens the mind wonderfully.

cYp

[He3]

ADJUSTMENTS TO PUBLIC SERVICE PAY AND PENSIONS
In my Supplementary Budget, I announced my decision to have top level pay rates examined by the Review Body on Higher Remuneration in the Public Sector and benchmarked against those of other EU countries of comparable scale.

The Government has considered the recommendations of the Review Body and intends to apply reductions to all public servants in the higher pay bands including hospital consultants.

Based on the Review Body’s recommendations I propose to apply a reduction in pay of :

8 per cent for those with salaries from €125,000 to €165,000;
12 per cent for those earning between €165,000 to €200,000; and
15 per cent for those earning €200,000 or more.
These are permanent reductions which will be reflected in future pension entitlements.

The salary of the Taoiseach will be reduced by 20 per cent. This reduction, together with the pension levy means the Taoiseach’s salary will be cut by close to 30 per cent in total.

Ministers and Secretaries General of Government Departments will take a pay cut of 15 per cent: an overall cut of close to 25 per cent when the pension levy is taken into account.

Financial Statement (Minister's Speech)

[cry freedom]

They don't get the 10% bonus anymore

Furthermore there wasn't that much of a discrepancy with senior civil servant pay:



After the pension levy and loss of opportunity for bonus- further cuts wouldn't have been fair. As is I think the upper echelons of the Civil Service are under paid... how can a Secretary General earn half of what a banking CEO earns ?

We need higher pay, real performance bonuses , more competition and more outside hirings in the CS

cYp

In a way I agree with you.
Some time ago there was a big fuss about the head of one of the big banks gettting paid 2.2 million.
David Dilger I think it was !
I have no problem paying these gentlemen that type of salary or even twice it, provided they did a good job, both for their company and the country as a whole.
I wouldn't give them five bob a week for their recent performance.

[Half Nelson]

Have ye got the picture yet?

Nothing has changed, nothing will change. The primary goal of the System is self-preservation.

[hammer]

How do the Dept of Finance actually draw up the budget.

They obviously dont think things through.

There are anomalies like judges, higher paid civil servants, pensions for TDs etc.................

Lets get some talent in there quick

[He3]

the working principle seems to be No back left unscratched.

[He3]

Having sat on it for three months, the Government slipped out the latest report by the Review Body on Higher Remuneration in the Public Sector in the wake of the Budget. Its approach was to compare Irish salaries with those in Germany, UK, Austria, Netherlands, Belgium and Finland.

It found that the Taoiseach’s and ministers’ salaries were the second highest and that salaries of secretary generals were the highest. Even after adjusting for pensions, tax and purchasing power, Irish salaries were still well ahead of most countries. In comparison with Finland (population 5.4 million), the Taoiseach’s salary was 33 per cent higher than his opposite number, ministers were 20 per cent ahead and secretary generals were 52 per cent higher.

The Irish Times - Letters

[ang]

Austen Hughes said the markets will be looking for any kind of slippage in the governments will to force through tough Budget decisions.

"We have already seen signs of some slippage with the news that senior civil servants may have their paycuts scaled back. Any more of this and there is a real danger that we will see adverse reactions."

"The markets want policies rather than personalities"

More Here:-

All eyes are on the markets after Lenihan cancer shock - National News, Frontpage - Independent.ie

[He3]

Austen Hughes said the markets will be looking for any kind of slippage in the governments will to force through tough Budget decisions.

"We have already seen signs of some slippage with the news that senior civil servants may have their paycuts scaled back. Any more of this and there is a real danger that we will see adverse reactions."

"The markets want policies rather than personalities"

More Here:-

All eyes are on the markets after Lenihan cancer shock - National News, Frontpage - Independent.ie

Sarah Carey calls it a most extraordinary outrage:

The excuses boil down to the point I’ve made in this column before – the top priority at all times is to preserve the final salary level of senior public servants so that the massive defined-benefit, uncuttable pensions will be protected. It is the most extraordinary outrage that these people, who issue orders for welfare and public service cuts, spare themselves on the grounds of fairness.

This cannot stand. This must not stand.

The decision was approved by Cabinet in the week Brian Lenihan was receiving his diagnosis. If this was a collective decision, they can collectively cop themselves on.

This is yet another sign of the institutionalisation of a long-standing party of government, so dependent on the “Sir Humphreys” that they are too quick to identify and sympathise with their unelected colleagues. The danger now is that anyone who opposes the policy reversal will be accused of exploiting the Minister’s illness, when in fact the opposite is the case. The Minister is entitled to his privacy, but his moment of weakness must not be ours.

U-turn on Civil Service pay cuts outrageous - The Irish Times - Wed, Dec 30, 2009

[ang]

In the Sarah Carey article which He3 has linked above, she reminds herself of Naomi Klein's theory of "Shock Doctrine". She argues that when a nation is in shock over a reaction to a disaster, policies to which we'd object in calmer days are slipped through.

This must not be allowed to happen. It is imperative, that when so much time and energy are spent in the preparation and delivery of the Budget, that it is allowed to follow through as is. Any discrepencies must be found during the formulation process and not after the event. Either somebody didn't do their job properly,or favouritism is the order of the day.

In the present economic crisis we have room for neither.