Wednesday, May 4, 2011

Grounds for a review of Irish judicial salaries are overwhelming

4 Courts and Rowers

The Journal of Legal Analysis, a Harvard publication, in its Winter 2009 issue, published a transnational comparison of the salaries of High Court judges in 28 OECD jurisdictions - Mexico and Switzerland being the omissions. Chile, Estonia, Israel, Slovenia are not included as they joined the OECD last year.

Rank

Country

Salary US$

Salary €

    2004-05 2004-05

1

United Kingdom

331,738

€224,147

2

Ireland

248,678

€168,026

3

Australia

241,498

€163,174

4

New Zealand

211,900

€143,176

5

United States

203,000

€137,162

6

France

198,201

€133,920

7

Japan

172,346

€116,450

8

Canada

166,800

€112,703

9

Iceland

156,250

€105,574

10

Luxembourg

141,606

€95,680

11

Netherlands

137,500

€92,905

12

Spain

135,686

€91,680

13

Finland

131,250

€88,682

14

Austria

125,225

€84,611

15

Belgium

117,073

€79,103

16

Denmark

115,568

€78,086

17

Sweden

110,520

€74,676

18

Germany

108,098

€73,039

19

Portugal

96,979

€65,526

20

Norway

94,000

€63,514

21

Greece

70,500

€47,635

22

Italy

58,245

€39,355

23

Poland

46,521

€31,433

24

Hungary

43,033

€29,076

25

Czech Republic

37,464

€25,314

26

Turkey

33,948

€22,938

27

Korea

33,600

€22,703

28

Slovak Republic

11,856

€8,011

The data relates to 2004/2005 and showed Ireland’s judges to be the second highest paid, next to their British counterparts.

Between 2004/2005 and 2011 the salary of a British High Court judge increased by 11.1% from £155,404 to £172,753 (€196,310)

The salary of an Irish High Court judge increased during this six-year period by 36.6% from €184,889 to €252,720 – the probability now being that Irish judges are the highest paid in the world.

This development a surge in interest by those wishing to become judges.  During the 2004-09 period the Judicial Appointments Advisory Board advertised for a total of 51 vacancies in the Supreme, High, Circuit and District Courts,  There were 1,916 applicants.

Apart from the High Court, there are other features of the Irish judicial reward system which gives Taoiseach, Enda Kenny, plenty of grounds to conduct a Constitutional Referendum to reform judges pay and not to capitulate on their reported request that the tax burden on pension funds in excess of €2.3 million.

The Irish Constitution, Bunreacht na hÉireann, exists to define our nation, defend its institutions and not to provide privileged refuges for the well-connected to escape their civic obligations and contribution to social solidarity, especially at a time of unprecedented crisis and widespread severe hardship.

Public Sector Pension Levy

It was reported by the Revenue Commissioners at the end of 2010 that 22 of the nation’s 147 judges failed to make a voluntary contribution to the Revenue Commissioners last year in lieu of this levy and that the cumulative payments of those judges who did make a voluntary contribution amounted to €1,246,787. If all of them had met the statutory obligations that public sector workers are obliged to honour the Exchequer could have received €2,374,180 from the judiciary last year.

Despite the leadership endeavours of the Chief Justice and the President of the High Court, there is effectively a deficit in Exchequer receipts of €1,358,915 that someone else must compensate – the scale of which would require the pension levy of over 5,400 public sector workers earning €20,000 per annum.

The defence based on Article 35.5 of The Constitution that the remuneration of a judge shall not be reduced during his continuance in office’ has never been tested so the underlying decision is therefore based on political and administrative considerations. This levy is a deduction from gross earnings of public sector workers. It is not a reduction in gross earnings.
Has the levy been applied to judges appointed after the Financial Emergency measures in the Public Interest Act 2009 became law on the 20th December that year?

Remuneration

Our 147 judges were paid €27,759,194 in 2009. That included a State pension of €72,983 paid to the Chief Justice in respect of service in another Constitutional Office – that of Attorney General from March 1987 to September 1991.

Their counterparts in Great Britain and Northern Ireland are paid 24% less. This difference costs that Irish Exchequer €5,343,770 - which equates to 67% of the total receipts from pension-related deductions on public service remuneration last year in your own Department. Why is Ireland borrowing from the IMF/EU/HM Treasury to pay this premium so that our judges continue to be the highest paid in the world?

It is perfectly reasonable to compare pay rates in Ireland with those in the neighbouring Common Law jurisdiction because, unlike France and Germany, judges in the UK are recruited from the ranks of experienced lawyers, some of who earn more than £500,000 per year at the Bar but populate the ranks of the 140-strong High Court bench at a salary of £172,753, 27% less than the 36-member Irish High Court. The British rates are also broadly comparable to those prevailing in Australia and Canada. Furthermore, the same arguments with respect to work-load and complexity, impact and sensitivity of decisions, court craft and out-of-court administration, management and leadership responsibilities apply in all of these jurisdictions.

Public Sector Pay Reductions / 2010

The Irish Exchequer is losing €2,485,924 as a consequence of the judiciary being exempted from the reductions imposed on the public service from 1 January 2010. I have read that judges are also exempted from PRSI. If this is the case, the loss to the insolvent Social Insurance Fund is €1,107,488. The combined impact of this loss would pay the annual wages at minimum tariff of over 200 workers.

Has the reduction and pension levy been imposed on all judges appointed since 1 January 2010?

Pay Parity

The salary of the Chief Justice exceeded that of the Taoiseach from the foundation of the State until 1968 when pay parity was established on the grounds that the Head of the Judiciary and the Head of the Executive would enjoy similar remuneration. The differential between the pay of Enda Kenny and the Chief Justice is now 54%. If the arguments for pay parity were solid when rates were rising by 110%, which was the case between 2000 and 2009, how do you intend to choreograph the restoration of this long-standing relationship when the Constitutional impediment has not been tested and judges have responded to the national financial crisis with blinding self-interest?

Flat-Rate Expenses

At present, judges receive unvouched, non-pensionable and non-taxable expense allowances the cumulative annual value of which is €508,856. It seems to me that these are also not ‘remuneration’ within the definition of Article 35.5 of Bunreacht na hÉireann. Did you Department impose the 8% reduction (amounting to €40,708) that applied to all qualifying public service workers since 1 January 2010?

Government car and Garda Driver(s)

The State is to continue to provide the Chief Justice with a Garda driven car at an average annual cost of €280,000 to commute to the outer suburbs.

The total cost of the four official cars used by the British Ministry of Justice in the year ended 31 March 2010 was £320,429 (€368,309), or €92,077 per vehicle and €47,600 is attributable to the use of the British Government’s Green Car Service by all judges.

The total cost of operating two official cars at the Northern Ireland Office in the year ended 31 march 2010 was under €90,000.

Official car usage in Britain is restricted to official business and from home to office journeys within a reasonable distance, on the understanding that users would normally be bearing classified documents on which they would be working, - as well as security and other relevant considerations.

1 comment:

  1. Jeez Myles John Murray and his pals will love you but it is time someone put the facts into the public domain. How come all our well paid journos in the Sindo etc have gone shy on this one?

    ReplyDelete