Fresh hearing directed over ministerial powers on VEC chief allowance

The Supreme Court has directed a fresh hearing to decide if the Minister for Education had power to terminate a €12,000 annual allowance paid to the chief executive of a VEC.

Because the issue of the Minister's power was not specifically pleaded, or argued before the High Court in 2013, the Supreme Court ruled on Thursday the Minister's right to fair procedures was breached.

On that basis, it overturned a High Court finding the Minister had no such power under the Vocational Education Committee (Amendment) Act 2001.

Mr Justice John MacMenamin, giving the three judge court’s judgment, directed a rehearing on that issue only.

The Minister had appealed the High Court decision by Mr Justice Gerard Hogan that the 2001 Act gave the Minister “absolutely no role” in terminating allowances or otherwise varying the terms and condition of the employment of the chief executives of the education bodies and therefore the termination was unlawful.

In the appeal, lawyers for the Minister argued, had that issue been explicitly pleaded or argued in the High Court, the point would have been successfully countered by the Minister’s side.

The finding was made in High Court proceedings brought by then Galway VEC chief executive Seosamh Mac Donncha, a former GAA President — who has died since the High Court judgment — and Mayo VEC chief executive Dr Katie Sweeney.

The case arose against the background of the Government’s plan to abolish the country’s 33 VECs and replace them with sixteen new Educational and Training Boards.

At the time they brought the case, both chief executives were on annual salaries of some €100,000 and claimed the axing of the allowance would affect their pension entitlements.

Under the Government’s plans for reorganising the VECs, Dr Sweeney also claimed she faced being reassigned while Mr MacDonncha claimed he would take over the running of three counties for no extra remuneration and a 300km commute.

In directing a rehearing, Mr Justice MacMenamin noted, when the appeal was heard, Mr McDonncha’s estate had not sought to reconstitute his case.

The Supreme Court had decided to proceed in relation to Ms Sweeney’s case and it was open to representatives of Mr MacDonncha to reconstitute his case when the matter returned to the High Court, he said.

In his 2013 High Court judgment, Mr Justice Hogan found the Minister’s June 2012 revocation of the Transport Liaison Officers Allowance in the case of the two chief executives was unlawful.

The State had argued it was entitled to revoke the allowance as administering the school transport scheme had not been part of their role as CEO for some two years.

Mr Justice Hogan found, while the Minister must consent to relevant employment terms for chief executives including remuneration and allowances, the legislation unambiguously assigned the role of determining terms and conditions of the chief executive to the local VECs. .

There was no evidence to show the relevant VECs decided to terminate the allowances and that decision was instead “clearly taken” by the Minister for Education, he said.

He rejected other claims the Minister had violated the terms of the Croke Park Agreement in how redeployment of the chief executives of VECs was organised.