€5bn ASSET SALE: Calls for ‘fire sale’ as bank chiefs earn more
That was one of the findings of a major report which recommends the sale of €5 billion of state assets to pay off the nation’s massive debt.
The recommendations of the Review Group on State Assets and Liabilities, led by economist Colm McCarthy, include:
* The eventual privatisation of airports with the initial sale of their non- core assets to ease debt.
* The sale of the ESB’s energy supply business and electricity distribution business and the transfer to Eirgrid of the transmission grid which is kept in public ownership.
* The privatisation of some ports.
* The privatisation of Bord Gáis businesses with the exception of transmission and interconnector assets which should stay in state ownership.
* The sale of Coillte’s forestry assets but not its land.
* The sale of the state’s 25% share in Aer Lingus.
The report also showed that nine chief executives of state companies continue to be paid more than €300,000.
The report found in some cases executives’ pay cuts had been “more than compensated” by an increase in “other elements of the overall remuneration package”.
The highest paid executive, Padraig McManus of the ESB, saw his core salary cut from €458,000 to €432,000. But payments under the heading “other” increased from €121,000 to €248,000. This meant his total package went from €654,000 to €752,000 in 2009.
John Mullins of Bord Gáis took a basic salary cut from €288,000 to €270,000. But “other” payments rose from €73,000 to €124,000 — leaving him with a €33,000 pay rise.
Responding to the report, the Government said it would examine ways of addressing the pay of at least 28 state employees who earn more than €250,000.
Minister for Public Sector Reform Brendan Howlin said “some people will be shocked at some of the pay rates” which he said are “out of kilter” with the rest of the economy.
“A lot of people are taking great personal hits in their income. So if we are to have any sense of fairness and solidarity, we have to look at pay rates across the public sector generally,” he said.
“I’ve been mandated by Government to bring proposals to Cabinet at an early date to see how that can be achieved,” he said adding it’s “operating in a very legalistic framework”.
On the sale of state assets the report cautioned against any immediate “fire sale”. Mr Howlin said “anything that is sold will be non-strategic”.
Each department will have to look at the recommendations and the Government will make a decision “as soon as practicable”, he said.
