State will not recover tribunal overpayments

TAOISEACH BRIAN Cowen ruled out the Government attempting to recover fees paid in error to barristers at the Moriarty tribunal. The tribunal is expected to cost an estimated €100 million.

Fine Gael leader Enda Kenny said senior counsel were being paid a daily fee of €2,500, instead of €2,250, because of an error in the Department of the Taoiseach in 2002. Total payments added up to more than €1 million, said Mr Kenny, who asked if arrangements had been made to recover the money.

Mr Cowen replied: “There are no arrangements made to recover it as it is not necessary.

“The fee was agreed in June 2002 and the Attorney General’s advice on the matter concluded that it would be inappropriate to withdraw the higher rate of fee which has been formally notified.

“He had advised that the tribunal lawyers should be notified that the €2,500 rate had been notified in error but that in all the circumstances, approval was given to its payment.’’

Mr Cowen said that the tribunal senior counsel had been notified by letter in August 2002, “that the rate of €2,500 was an error arising from a misunderstanding between my department and those setting fees but that, as an exceptional measure in the circumstances, the €2,500 rate notified to them in June had been sanctioned to stand on a strictly personal basis’’.

Dr James Reilly (FG, Dublin North) remarked: “It was largesse.’’

Mr Kenny said: “It was left at the higher rate!’’ Mr Cowen said: “Yes. That was the agreed fee based on that notification and advice from the Attorney General.’’ Labour leader Eamon Gilmore asked about the normal situation which applied when an overpayment was made by the State.

“If, for example, a civil servant receives an overpayment in their salary, is it not recouped? If a social welfare recipient receives an overpayment of social welfare and an error is made by the department, is the money recouped?’’

Mr Cowen said that in view of the circumstances pertaining at the Moriarty tribunal, which was doing specialised and complex work, it was considered that the fee for its senior counsel was appropriate and should remain at €2,500 a day.