Housing Minister Defends Pay Rises For LDA and Uisce Eireann CEOs

The Housing Minister is defending a €50,000 pay hike for the head of the State agency tasked with delivering affordable homes.

John Coleman of the Land Development Agency will see his pay rise to €250,000 after James Browne approved the increase in May. 

The Agency was criticised in the same month for raising rents for tenants in a number of its cost rental developments in Dublin, Wicklow and Kildare.

Minister Browne says we have to pay these kinds of sums to ensure we get the best people in the job:

"Whatever anybody thinks about the amounts, they are the commerical rates and that's what an experienced CEO is getting in this country at the moment and in fact getting far more than that.

"John Coleman is a very experienced person and the LDA is delivering significantly now in terms the amount of houses they're building, thousands every year.

"I understand when people hear a number like that they do baulk."

The Irish Times reports the State’s affordable housing agency would be allowed to deliver more homes for private sale at full market prices under planned legislation to be progressed later this year.

Currently, 4 out of 5 homes in an LDA development in a large urban area must be cost rental, social or affordable homes.

It's believed the Minister would like to see this rate drop to 50% as seen in smaller towns and villages.

Minister Browne says the LDA is working well and is providing for the country:

"It is our State building agency, it's delivering a large amount of housing every year, including with that cost rental model.

"That provides homes at at least 25% below market value so those homes would be signicantly below what someone would pay in the private rental market."

The Minister was also asked about the story that emerged recently where Uisce Eireann were charging St Joseph's GAA Club €52,000 to connect their new club house to water infrastructure.

It comes at the same time that the organisation's boss Niall Gleeson will receive an overall pay package this year of €391,953 - an overall rise of €118,000 on last year's salary.

Minister Browne says this is just the world we live in.

"The pay rises have been through a big review process and it was assesed that these are the commerical rates for people in this business and from these backgrounds.

"Look I'm not justifying big wages but it is a reality unfortunately of these types of sectors. 

"I can only deal with the reality of the situation."

That report was funded by the Local Democracy Reporting Scheme.