SENIOR FIANNA Fáil TDs are expected to reject Green Party leader John Gormley’s proposal that TDs should voluntarily give up pay increments awarded to those with over seven years in the Dáil at their parliamentary party meeting tomorrow night.
Taoiseach Brian Cowen and Minister for Finance Brian Lenihan yesterday made it clear that the increments – which are a typical feature of the pay scales of other public servants – cannot be taken back from those who already have them, but legislation would be introduced to stop others qualifying for them.
Mr Gormley said the 66 TDs receiving them should “take the initiative” and volunteer to give them back. All Ministers, TDs and Senators pay the pension levies, while Ministers and about a dozen TDs have volunteered a further 10 per cent pay cut.
Speaking in Ferbane, Co Offaly, Mr Cowen said the details of the legislation would be worked out shortly, but it “would change things for the future”.
Speaking in Newcastle West, Co Limerick, Mr Lenihan said he “entirely refutes” charges that the situation was ever misleading.
“A wide range of reforms were announced in the Budget involving substantial sacrifices in terms of salaries and expenses by office holders and deputies and a long range of measures were announced which will be implemented in the political system,” he said.
“It was always envisaged and it was envisaged at the time of the Budget that the details of this would have to be dealt with in legislation and that’s where the details will be dealt with, but the principle of what was decided on in the Budget stands,” he added.
He said it was “never stated” in the Budget that increments would be removed, though the speech did say that TDs would “no longer qualify”.
“Deputies, like all public servants, after a period of time earn a certain amount of additional salary. In my view that’s an inappropriate arrangement for deputies and it’s being abolished for deputies. That was made quite clear in the Budget statement,” he said.
“But obviously in the case of those who have already earned these monies, and they are in the same position as gardaí, nurses and other public servants who have earned and indeed many people in private employment who have earned additional income by virtue of years of service, clearly there are pension implications in any changes for that,” he said.
Questioned about the legal difficulties that exist to remove ministerial pensions from serving TDs, Mr Lenihan said he had made it clear the practice was being abolished “from the next general election and we are taking advice on the extent we can limit it from current office holders”.
The controversy which erupted after it was reported that 66 TDs would continue to receive the payment has caused serious reputational damage, though, privately, both Labour and Fine Gael fear that they are also being hit.
A number of Opposition deputies have been infuriated by calls for the removal of the allowance, which rises to €6,400 a year for those with more than 10 years’ service.