Fiscal watchdog accuses Government of weakening it with proposed pay cut

The Irish Fiscal Advisory Council said the reduction in the  daily rate of pay for its top job could 'reduce the pool of potential applicants' for the vacant position

A letter was sent to Finance Minister Michael McGrath.

The Irish Fiscal Advisory Council (IFAC) in a letter to Finance Minister Michael McGrath has accused the Government of weakening the standing of the watchdog by proposing to reduce the daily rate of pay for the top job at the watchdog.  

The letter, which was signed by IFAC temporary chairperson Michael McMahon and council members Adele Bergin and Alessandro Giustiniani, marks an escalation in a dispute simmering for some weeks with the Government over reforms recommended by the Organisation for Economic Cooperation and Development. 

The watchdog in the letter welcomed the implementation of "many" of the reforms but warned a proposal over the daily rate of pay for its chairperson will make it difficult to recruit a permanent successor to Mr McMahon who took up the top post on a temporary basis last year.  

"Specifically, the proposal reduced the standing of the council and chairperson via a cut in the rate of pay per day, effectively demoting the position," IFAC said in the letter. 

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"This is likely to reduce the pool of potential applicants and poses risks to the council's work and its ability to deliver on its mandate," it said. The letter to Mr McGrath was also copied to the chair of the Oireachtas Budget Oversight Committee. 

Mr McMahon, professor of economics at the University of Oxford, told the Irish Examiner he thought it was key to resolve the issue for his successor, but that IFAC had made little headway in recent weeks.     

In a statement, the Department of Finance said it had been in discussion with Ifac for some time over a number of positions at the watchdog. 

"The department would like to fill these positions in a timely manner, through PAS [Public Appointments Service] competitions. The department will continue to engage constructively with the council on these matters, will consider the contents of the letter, and respond in due course," it said.