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Board of NAMA receive huge salary increases as ordinary workers get paycuts – Morgan

11 March, 2010


Speaking today in the Dáil after it was revealed that the salaries of members of the NAMA board were revised upwards after the paycuts announced in Budget 2010, Sinn Féin Spokesperson on Finance Arthur Morgan has asked the Taoiseach and Minister for Finance to justify the 70% increase in the salary of the Chairperson of the NAMA Board.

In response to a Parliamentary Question from Deputy Morgan Finance Brian Lenihan confirmed increases in pay for the members of the board of NAMA.

Deputy Morgan said:

“The Taoiseach and Minister for Finance need to explain to the Irish people the reason why they are paying the Chairperson of the NAMA credit committee €150,000 per annum for a three day week and why the Chairperson of the NAMA Board is being paid €170,000 per annum, particularly at a time when they are cutting the salaries of nurses, schoolteachers and Gardaí and other hardworking public servants.

“Is their work not at least as important as NAMA?

“Why at a time when paycuts to public sector workers were announced did the salaries for the Chairperson and the Ordinary Board Members of NAMA increase substantially upwards?

“The increase for the Chairperson went from €100,000 to €170,000 and the increase for the Board Members went from €38,000 to €50,000, all within just a few weeks of them being appointed.

“Try explaining that to the public servants whose wages you slashed in Budget 2010.”

Speaking afterwards outside the Dáil, Deputy Morgan said:

“This revelation is a double-slap to all those hardworking public sector workers who were forced to bear the brunt of Budget 2010. Not only did the lowest earners see their incomes slashed, but they saw the top earners in the public sector have their pay-cuts reversed and now members of the NAMA board have had their incomes revised upwards.

“The Board were only appointed in mid-December and the Government rushed almost immediately to increase their salaries by up to 70%. Front line workers will be deeply insulted by these double standards which they will justifiably see as the Government looking after their political cronies, yet again.” ENDS

Editor’s note: Below is the Parliamentary Question tabled by Deputy Morgan and the response from Minister Lenihan.

DÁIL QUESTION

NO 65

To ask the Minister for Finance the level of remuneration for the National Asset Management Agency board members; if he will disclose this; if this was set prior to the paycuts announced in Budget 2010; if these paycuts apply; and if he will make a statement on the matter.

- Arthur Morgan.
For ORAL answer on Wednesday, 10th March, 2010.
Ref No: 11447/10

REPLY

Minister for Finance ( Mr Lenihan) : Under section 21 (1) and 25 (9) of the National Asset Management Agency (NAMA) Act 2009, I have approved the following fee arrangements. In setting the fees account was taken of the critical importance of the work to be undertaken by the Board and the fact that its workload will be excessive by normal standards in the first year of operation. I intend to review the fees after a year.

Chairperson -all inclusive fee of €170,000 per annum on the understanding that the incumbent is available without restriction.

Chairperson of Credit Committee - all inclusive fee of €150,000 per annum on the understanding that the incumbent works no less than 3 to 4 days a week.

Ordinary Board Members - fee of €50,000 per annum.

Chair of other Committees - fee of €10,000 per annum in addition to Ordinary Board Member fee subject to a maximum of one per member.

The Board was appointed on 22 December 2009. Originally, the fees for the Chairperson and Ordinary Board Members were set at €100,000 and €38,000 respectively. Following discussions with the Chairperson and the Chief Executive of the National Treasury Management Agency last month and in light of the workload of the Board’s operations over the initial period of its operation I revised these fees from a current date.

Ref No: 11447/10

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