Cogan and Others v Minister for Finance

• Jurisdiction: Ireland
• Judgment Date: 13 May 1941
• Date: 13 May 1941
• Court: High Court

Cogan and Others v. Minister for Finance.

MICHAEL COGAN, DAVID SAYERS AND OTHERS

and

THE MINISTER FOR FINANCE AND THE ATTORNEY-GENERAL

Cost of living bonus - Civil Servants - Transferred Officers - Stabilisation of bonuses - Right of Minister for Finance to make regulations for - Government of Ireland Act, 1920 (10 & 11 Geo. 5, c. 67), s. 55, sub-s. 1 - Civil Service Regulation Act, 1924 (No. 5 of 1924), s. 9 - Ministers and Secretaries Act, 1924 (No. 16 of 1924), s. 2, sub-s. 3 - Civil Service (Transferred Officers) Compensation Act, 1929 (No. 36 of 1929), s. 14,sub-s. 1 - Civil Service (Stabilisation of Bonus) Regulations, 1940 (Stat. R. & Or., 1940, No. 177).

Paragraph 2 of the Civil Service (Stabilisation of Bonus) Regulations, 1940 (Stat. R. & Or., 1940, No. 177) provides:—"On and from the date on which these Regulations come into force, the remuneration of every person to whom these Regulations apply, shall cease to be variable in consequence of changes in the index number and, in lieu thereof, the remuneration of every such person shall—

• (a) if he was in the Civil Service immediately before the said date, be calculated by reference to the index number or numbers by reference to which his remuneration was calculated immediately before the said date, and

• (b) if he enters the Civil Service on or after the said date, be calculated by reference to the index number or numbers by reference to which his remuneration would have been calculated immediately before the said date if he had then been in the Civil Service."

Certain civil servants (each of whose remuneration was affected by the above Regulation), including two who has been transferred from the British service in pursuance of the Treaty of 1921, brought an action against the Minister for Finance, contending that the said Regulations were ultra viresand void, and that the Minister had no power to fix their scales of salary without regard to fluctuations in the cost of living.

Held that the Minister for Finance, in making the said Regulations stabilising bonuses, had acted strictly within his statutory rights, and that the plaintiffs were not entitled to be relieved from the effect of the said regulations.

Cahill v. Attorney-General of the Irish Free State,IR [1925] 1 I. R. 70,followed.

Trial of Action.

The facts as set out in the statement of claim were as follows:—Each of the plaintiffs was a civil servant in the service of the Government. The plaintiffs, Michael Cogan and David Sayers, were transferred to that service from the former Civil Service of the late United Kingdom of Great Britain and Ireland. The remaining plaintiffs entered the service since the establishment of the State. The plaintiff Michael Cogan was graded as a minor staff officer in the Irish Land Commission. He entered the Civil Service of the Government of the late United Kingdom in the month of June, 1914, as assistant clerk in the Irish Land Commission. As the result of re-organisation in the year 1920 he became a clerical officer on a scale of £80 rising to £250 per annum. On the change of Government he was transferred to the service of the Provisional Government, subsequently to the Civil Service of the Government of the Irish Free State and subsequently to the Civil Service of the Government of Eire. In the year 1933 he was promoted staff officer with a salary of £200 to £300 a year together with an appropriate cost of living bonus. The plaintiff David Sayers was an established postman Grade B in the Post Office Service. He entered the service of the Post Office of the late United Kingdom of Great Britain and Ireland on the 17th day of August, 1908. He was duly established on the 25th day of July, 1915. He was transferred to the Post Office of the Provisional Government, subsequently to the Department of Posts and Telegraphs of the. Irish Free State, and then to the Department of Posts and Telegraphs of Eire, and is now a serving postman. His present salary is £98 16s. 0d. together with the appropriate cost of living bonus.

The plaintiff Henry James Sullivan was a clerical officer in the Department of Industry and Commerce. He entered the Civil Service by open competitive examination in July, 1933. He was graded as a clerical officer on being successful in that examination and was allocated to the Department of Industry and Commerce on a salary of £60 on entry, rising to £70 at 18 years of age and thence to £150 by annual increments of £5. In addition to his salary he was entitled to a cost of living bonus. Prior to his entry for the open competitive examination at which he was successful he had before him an announcement in a circular of an official character by which the Minister for Finance authorised the conditions of service for those who would be successful in that examination. The following conditions were laid down in the said circular with reference to the scales of pay and cost of living bonus:—"The Minister for Finance authorises the following announcement with reference to conditions of service:—1. The scales of pay will be as follows: Men (unmarried) and women (Scale A)—£60 (on entry) rising to £70 at 18 years of age and thence by annual increments of £5 to £150 per annum, with an efficiency bar at £120. Married men (Scale B)—men on marriage will be placed at the appropriate point, having regard to service in the grade, on the scale £70, rising by annual increments of £5 to £80, thence by annual increments of £7 10s. to £110; by £10 to £140; and by £7 10s. to £200 with an efficiency bar at £155. Thus a successful male competitor entering the grade at the age of 18 would on marriage at 25 years of age, be placed on Scale B at the point £120. Officers entering on Scale B will also receive a lump sum payment on marriage, equivalent to 12 months' back pay of the difference between the salaries on Scales A and B. In addition, allowances (subject to a total maximum of £60) will be payable in respect of each dependent child up to 16 years of age, or in the case of invalid children up to 21 years, or in the case of children still at school after 16 years, up to 21 years or the date of leaving school whichever is the earlier.

Cost of living bonus will be payable in addition to the scales and allowances shown above. At present the bonus on £60 is £36, on £150 £65 3s. 0d. and on £200 £77 16s. 0d.."The said Henry James Sullivan accepted the said conditions, and in reliance on the terms of the said circular entered and sat for the said examination and on being successful in the said examination entered the Civil Service on the faith of and in reliance on the said conditions.

The plaintiff Edward Joseph Bolger was a postman (Grade B) in the Department of Posts and Telegraphs. He entered the service of the Department of Posts and Telegraphs as a result of a limited competitive examination held on the 29th of May, 1928, and at which he was successful. The official syllabus which was issued to those offering themselves for that examination (including the said plaintiff) after setting out the rates of pay and increments, provided for a cost of living bonus...