THE GOVERNMENT has announced that ministerial pensions paid to serving TDs, senators and Irish MEPs will be cut by 25 per cent from the summer and will be abolished completely after the next general election.
Minister for Finance Brian Lenihan last night said he would introduce legislation to give effect to the decision that will pass all stages in the Oireachtas, before the Dáil and Seanad rise for the summer recess.
Some 28 current members of the Oireachtas are former ministers, as are five MEPs. However, as serving members, they are entitled to be paid only 50 per cent of the full pension under current laws.
The exception is former taoiseach Bertie Ahern. As a former head of government, he is entitled to receive his full ministerial pension notwithstanding that he remains a TD. He was paid a pension of €110,000 in the last eight months of 2008.
The 25 per cent reduction in the actual amount paid will mean a 12.5 per cent net reduction of the full pension. For the rest of this Dáil term, instead of getting 50 per cent of the pension, serving members will get 37.5 per cent.
The new legislation will also abolish the long-service increments for TDs with effect from the budget on April 7th. About 20 TDs, elected in 2002, who were due to receive an increment of some €3,000 on May 18th for seven years’ service will not receive it.
Mr Lenihan, speaking at briefing for reporters last night, said that the legal advice the Government had received from the Attorney General Paul Gallagher was that it was not constitutionally possible to reduce the payment by more than 25 per cent.
He said the Attorney General’s advice was that those affected could claim a form of property right and that the reduction had to be proportionate to that imposed on other groups. He instanced professionals providing services to State bodies and Government departments whose fees were reduced by 25 per cent.
He also dismissed the suggestion that what was being proposed by Government fell short of his budget day announcement, when it was assumed the arrangement would be discontinued with immediate effect.
However, the two main Opposition parties questioned why the pension was not being scrapped entirely. A Fine Gael spokesman said Enda Kenny had called for an immediate abolition in his pre-budget submission and wanted to see the legal justification for deducting only 25 per cent. That view was echoed by Labour which also criticised the Government’s handling of the matter.
Mr Lenihan also announced last night that there would be a 10 per cent reduction in TDs’ and senators’ expenses, and a 25 per cent reduction in travel and subsistence allowances.
It is understood that the Department of Finance may insist on an electronic clocking-in system for Oireachtas members.
A number of TDs and MEPs have already indicated that they wished to relinquish their ministerial pensions with immediate effect.
They included Fine Gael leader Enda Kenny; Labour leader Eamon Gilmore; the Fine Gael TD Jimmy Deenihan; the Labour deputies Joan Burton and Liz Mc Manus; the former Fianna Fáil minister Mary O’Rourke; as well as MEPs Gay Mitchell (Fine Gael) and Proinsias De Rossa (Labour).
Mr Ahern is in receipt of the largest pension, an estimated €160,000, which will now be reduced to €124,500, to be paid in addition to his TD’s salary.
Others who are entitled to large pensions include Fianna Fail TD Frank Fahey (€41,846) in 2008); Ms O’Rourke (€56,877); former minister for finance Ruairi Quinn (€46,852).