Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
LAST UPDATE | 14 Nov 2019
THE NATIONAL TRANSPORT Authority has been accused of “gross mismanagement” of its budget after it emerged it is paying agency staff double what it is paying its own full-time staff.
At a meeting of the Dáil Public Accounts Committee this morning the authority was criticised by TDs and senators for having more agency staff working with the body than it does permanent staff.
On average, full-time staff at the NTA are paid about €73,728 a year, including PRSI and pension payments, the committee heard.
In comparison, the average wage of an outsourced worker with the NTA is nearly €140,000.
Chairperson of the committee, Fianna Fáil’s Sean Fleming said he was shocked by the figures, stating that the authority had been in existence for ten years, yet it still had more outsourced staff working for the body than it did full-time workers.
“It is totally unacceptable,” said the chairman, who explained that the figures provided to the committee in correspondence from the NTA, and seen by TheJournal.ie, shows that €8.7 million is being spent by the body on 118 full-time staff.
However, some €20.6 million is being spent paying 148 agency staff at the NTA.
The correspondence states:
“Currently, there are 148 outsourced placements in the NTA, they each are employees of the service providers that have been engaged by the NTA through public procurement procedures.
“Compliance with public procurement means the NTA has to go out to the market regularly resulting in increased cost for the required skill and expertise in the current climate. The cost of an outsourced placement is approximately, on average, double the salary cost of an employee.”
Fleming said people in the body were “doing the same job” as some of their colleagues and getting paid a lot more.
The committee was told that the agency workers are not working on specialised projects, but are carrying out “day-to-day” activities.
He said this was bad expenditure on behalf of the taxpayer.
“It is outrageous, this represents gross mismanagement of their financial allocation,” said Fleming.
In a statement to TheJournal.ie a spokesperson for the NTA said it “notes that issues around staffing in the organisation were raised at the Public Accounts Committee today.
“While the NTA would agree with the assertion that the organisation should be given sanction to recruit more permanent staff, the Authority rejects in no uncertain terms, the accusation of ‘gross mismanagement’ that was levelled at it today.
“This matter was addressed in detail by NTA at the PAC meeting of 10 October,” they added.
“At that meeting, it was outlined by NTA CEO Anne Graham that NTA has itself consistently requested increased numbers of permanent staff so as to reduce the number of contractors employed by the organisation.
“Until such time as approval is granted to recruit additional personnel the NTA is required to operate within its sanctioned payroll limit for permanent employees,” the spokesperson said.
To embed this post, copy the code below on your site
HSE is the same. They have had many contracted workers switch to agency because they earn more
@Ali Ní Dhomhnaill: I pretty much guarantee that the workers are seeing nothing like 140K. They will earn a bit more, but it will come with a defined contribution pensions scheme etc. The 140K will include a massive sum creamed off by agencies and consulting firms, probably run by people who were in school with politicians and senior civil servants.
@Chris Mansfield: kinda missing the point. If 140k is being paid out in the first place it’s already mismanagement when hiring fill time staff cuts min 50k off that yearly bill. The agencies aren’t at fault here. The state is
@Chris Mansfield: agencies take up to 20% but if they hired the staff they would have to pay pension, prsi etc… other benefits too depending on the union. A contract employee has to pay an accountant and contribute to own pension completely.
@Ali Ní Dhomhnaill: 3rd level same
@Craic_a_tower: no you don’t have to pay an.accountant. I do my returns myself every year on ROS online. it’s not rocket science.
@wkcpl: yep , but the reality of the system in ireland we have this ludicrous situation where bodies like NTA are reluctant to add the permanent staff because the inflexibility that comes with that – this is Ireland and if you take a look at the civil service you can see exactly why this nonsense happens , you cannot for the love of god get the flexibility to replace or move poor performing staff on once they are permanent….theres been so many examples of this that the article is being very one sided and making just sound so simple – why we pay so much more for agency staff its a disgrace – the disgrace is the inflexibility baked into the public sector – take a look at what happened during the worst recession in our lifetime – private sector was decimated with job losses but the civil service remained untouched – now 10 years later we have the likes of RTE like rabbits in the headlights – wow how are we going to respond to this dynamic market ????? The real reason that agency staff exist is because of the inflexibility in being able to actually manage staff numbers at all once they are made permanent in the public sector and all this other blather is nonsense.
@Chris Mansfield: clarify in school just because someone who is educated does not mean they will be ones doing this, often times its people who have money
@Craic_a_tower: @Craic_a_tower: We’re dealing with an average €70,000 difference here. I think that would more than cover the agency fee, pension, accountants fee and any thing else while leaving the contractor plenty more than a full time employee.
@Craic_a_tower: and dont forget if they want to get rid of them at the end of the contract they can. that sort of flexibility costs. also I suspect agency staff come off different budgets so can be brought in quicker than hiring with less oversight.
Agencies laughing there way to the banks with Gross Margins
Typical day to day madness that passes as normality on this island
@Gus Sheridan: it is the same all over the world and nothing unique to here. Accountancy practices are to blame
@Craic_a_tower: if it didn’t rain so much, I reckon the country would actually burn down.
My wife is today working for the HSE in east Dublin as a social worker in a house with children with learning difficulties. Today two staff called in sick (understandable stress, the job is a nightmare). Day to day they are pretty much fighting fires trying to give the parents of these children a break and try to teach the life skills. Last year the entire service wad almost closed down because of a shortfall of €140,000 ( the same amount being given to soon to be ex director john pepper as a golden handshake. The government has no Interest In forcing proper checks on state and semi state companies but when it comes to your children they will cut you to the bone. Sickening
I must be in the wrong job; I’d even be happy with the €73,728.
@Earth Traveller: me too I’m on half that and have years of college courses behind me. Seriously thinking of changing jobs.
A large chunk of that would be going to the agency & would also be VAT. In addition, temp work has less security & generally commands a higher rate. I see no reason why the NTA can’t establish & manage their own panel of temps. They’d save a fortune
@Steph: they would have to hire them as permanent staff after a while under existing employment law. That is why they use agencies. Once they are hired the books show them as a liability and they have to start putting money into an insolvency fund. Effectively it would cost more hence they use agencies and contractors
@Steph: I think alot of them are IT contractors though.
@Craic_a_tower: the same legislation around permanency applies to agencies too. I spent years working in agencies & there is nothing that can’t be done in house
@Steph: not really as you have a company the agency hires so you don’t have to be made an employee. I have been a contractor for 15 years and companies make you go through an agency to avoid all the red tape and risk
@Craic_a_tower: no they make you go through an agency because they fear the red tape and don’t have the knowledge of employment law needed to avoid finding yourself in a position where you have unnecessary staff. They pay the agency as an easy way out rather. They could very easily have someone in-house responsible for that. They would have the cost of that person’s salary but it’s nowhere near what the agency costs add up to
But sure it’s not their money, it’s disgusting how much money is wasted in Ireland.
Company i worked for used agency workers quite a bit. They didnt have to pay Sunday or bank holiday rates, didnt have to pay holidays and if they didnt like them it only took 1 phone call and John Joe and Mickey were replaced the following morning. It’s quite common these days
Work agencies should be banned in this country.they are ruthless
@dick dastardly: Honest question, why?
@dick dastardly: they really aren’t. They mean a lot of people can earn way more than if they were employees. I know a lot of people earning more than 100% above the salary they would get by going through agencies
Roll on the FG lickers telling us its super value…
@MickN: Its typical public sector stuff. People are always more loose with other peoples money.
@Damon16: did you read the article? They have sought approval for additional staff but government won’t approve. Same as in hse.
Welcome to Ireland.
@Keith McCourt: nothing unique to Ireland in any shape or form. What makes you think it is?
I wonder who these agencies are?
@Shakka1244: Friends of friends as per…
This is not particular to this company its happening in many why no story on them??
The agency pays minimal wage to its workers and creams off the top for itself.just like any other buisness it it there to make as much as possable for as long as possable after all ,if it all goes up in the air the agency walks away with the cash and as its a race to the bottom for all workers here in ireland
Which jobs in the NTA pay 70k. What do i need to study, programming language, accounting or is it a Luas driver?
The irony of the NTA paying double money for procurement expertise. When in house procurement would have rules preventing such frivolous spending. Shambles.
@JustOneScoop: A rule of thumb is that a permenant employee costs double what their salary is anyway, so they’re not really paying double.
Main difference is they can ramp up & down a team when needs arise. No point having permenant staff if a project is just 1 year long, especially given how fickle the government are at committing to spending.
The NTA are the gold standard for quango’s in Ireland, they make the HSE look good
Of course they are, it’s the leprechaun Republic, a pot of gold for everyone.
140k is over 80k take home to drive a bus where do I sign up?
Employment AGENCIES are destroying Countries. Nurses for disabled centers typically work through agencies because they get paid double that of permanent staff. It’s not fair on disabled people as they’re looking at new faces , listening to different languages, have no consistency which they really need. Agencies should be banned.
Like to know who are the agencies supplying these staff. They’re coining it.
How do you get a job there
Don’t be fooled. There’s really no scandal here, and Fianna Fail knows that. This is standard in industry.
Whenever you use agency workers they cost more for a variety of reasons including:
- The agency takes a huge cut
- The org is usually not paying for things like sick leave, pension, etc. so
- You can bring them in & out as needed, which is cheaper than a permenant staff member
All that adds up to what sounds like a very high rate, but in reality is the same as a full time employee, but the advantage is if you just need them for 6 months or 2 years, you’re not bringing in a permenant staff member you can’t ever let go, and all the costs associated with that.
have your say