Bonus payments - DAA U-turn a victory for Government

COMMON SENSE has prevailed in the row over the controversial bonus for Dublin Airport Authority boss Declan Collier.

His decision to forgo bonus-related pay in light of prevailing national economic circumstances is to be welcomed.

The U-turn by the DAA represents a significant victory for Government as it faces further opposition to pay cuts from the judiciary and medical consultants. The vexed issue of excessive pay goes to the heart of deep-seated inequality in Irish society, where people are governed by two distinct set of rules — one for the haves and another for the have-nots.

While fat cats earn huge pay packages, hard-pressed taxpayers, including pensioners and other social welfare recipients, as well as workers at the bottom of the pay scale are being squeezed mercilessly by the Coalition to fund the ECB/IMF bailout.

The crux was that Mr Collier’s total pay package for last year was up on 2009 even though he had taken a 12% cut in his basic salary. Clearly, that was unacceptable at a time when people are desperately trying to make ends meet. It also flew in the face of a Government ruling that no bonuses be given in the public sector for 2010.

Blatantly ignoring the Government edict, the DAA board had provided for a performance-related payment of over €106,000 for Mr Collier for 2010. With the board refusing to reverse its decision, Transport Minister Leo Varadkar was absolutely right to threaten not to reappoint several directors later this year unless the chief executive opted not to accept the bonus payments for last year. Their days are numbered.

In another twist, Finance Minister Michael Noonan challenged DAA directors to consider their position in the public interest. Putting it up to them, Mr Noonan said: “The Irish taxpayer is the 100% shareholder in the Dublin Airport Authority. Now, if directors cannot agree with the view of the shareholder and the shareholder is represented by the minister, I’d ask the question what are they doing staying on?”

The simple answer is that the Government was powerless to get rid of DAA directors appointed by the Fianna Fáil-led administration until their term of office was up. Equally, the minister was powerless to prevent Mr Collier receiving his contractual bonus despite taking a pay cut.

To be fair to Mr Collier, the record shows he has turned around the fortunes of the DAA, cutting costs and introducing efficiencies. It could be argued that having done his job, he was entitled to his money. Not in these hard times. The outcome is a vindication of Government policy to impose a ceiling of €200,000 on inflated pay levels in the upper echelons of the public sector where salaries have escalated unreasonably compared with those in other countries.

Seemingly blind initially to its moral obligation in the national interest, the authority’s board has acted responsibly in the final analysis. Had the Government imposed the ultimate sanction of sacking Mr Collier and replacing DAA directors, it would be perceived by the public as grasping the nettle and putting down a marker.