Bonuses for Irish Water staff

Ministers were left red-faced after it was revealed 299 staff at Irish Water are in line for bonuses of up to €7,000 on average — despite Cabinet outrage at the move.

News of the top-up pay scheme at the company initially provoked condemnation from Social Protection Minister Joan Burton and Fine Gael’s Brian Hayes.

However, it later emerged two Government departments had sanctioned the bonuses as the Irish Water controversy again consumed the Coalition.

Irish Water’s managing director John Tierney told the Dáil’s Public Accounts Committee the departments of Public Expenditure & Reform and Environment had been notified of the scheme to pay bonuses of up to 10%, which also exists at Bord Gáis.

Before the PAC bombshell, Ms Burton said she was “astonished” that bonuses would be paid, as the country could not return to a Celtic Tiger bonus culture.

Junior minister at the Department of Finance Brian Hayes said bonuses for Irish Water staff were not justified and that the Government was firm in its policy of not allowing such top-ups in the semi-state sector.

He said the Public Expenditure Minister Brendan Howlin had taken “a very firm policy position… which effectively knocks out bonuses in the semi-state sector”.

A spokesman for the Government also said it was not policy to pay bonuses to semi-state organisations.

However, Environment Minister Phil Hogan failed to echo the condemnation expressed by his ministerial colleagues and refused to say bonuses should not be given, saying it was a contractual matter for the Department of Public Expenditure.

Mr Tierney told the PAC: “Every employee has the opportunity to earn bonuses on the basis of high performance, but no one has been paid yet, given it is early days.”

It also emerged that under-performing staff could not be sacked, but just moved aside or disciplined.

The Government confusion came as scandal raging over massive start-up costs for Irish Water spread to the Taoiseach as Enda Kenny admitted that he had full knowledge of the €180m pumped into the organisation.

As opposition TDs demanded embattled Mr Hogan be sacked for his failure to get a grip on the organisation, Mr Kenny took responsibility for the key decisions regarding Irish Water — but said he was not aware that nearly half the costs, €86m, were earmarked for outside consultants.

Mr Hogan insisted he had no regrets about the controversy, which again consumed the Government on the first day of the Dáil’s’ new term.

Asked if the revelations of the start-up costs had been a PR disaster, Mr Hogan said: “You can’t make an omelette without breaking eggs.”

Opposition TDs accused Mr Hogan of “arrogance and incompetence” as Sinn Féin and some Independents TD demanded his resignation.