Politicians must take the lead on cutbacks in pay

INSIDE POLITICS:A corrosive cynicism about politicians is making it hard to solve our economic crisis

THE DOWNFALL of John O’Donoghue should bring it home to TDs, once and for all, that they will have to accept fundamental changes in the way the political system operates, if they want to retain a shred of credibility with an increasingly angry public. The controversy over the Ceann Comhairle’s expenses developed from the simple fact that they were grossly extravagant by any standards.

The intervention by Eamon Gilmore and Enda Kenny last Sunday spelled the end for O’Donoghue. Instead of recognising reality and departing with some dignity, he left it to the Labour leader to politically assassinate him on the floor of the Dáil chamber.

The spectacle was unpleasant but, if it had to be done, ’twere well it were done quickly. Otherwise the unedifying controversy would have dragged on for days on end with the departure of the Ceann Comhairle the only possible outcome in any case.

Some good may come from the sorry saga if it prompts Ministers and TDs to sort out their pay and expenses regime in a transparent way. Given the savage cuts in public spending that are inevitably going to feature in the budget, it is imperative that a lead is given by the political system. Politicians need to be seen to adopt the kind of financial sacrifices and reform of outdated work practices that will almost certainly apply to everybody else who is paid from the public purse.

The Government’s greatest failure over the past year has been its inability to provide inspired leadership. Many of the deeply unpopular actions it has taken have been necessary but it has still not managed to convince the public about the sheer scale of the problem facing the country, never mind the need for the kind of draconian action that is required to deal with it.

It has been argued in this column for a long time that bold initiatives such as halving the salaries of the Taoiseach and his Ministers, the abolition of the Mercs and perks culture for those at the top of the political tree, and a significant reduction in the pay and expenses of TDs, was a vital prerequisite for dealing with the wider problem of bloated public expenditure. That the same should apply to other pampered groups like judges and senior State officials goes without saying, but the politicians have to go first.

The reluctance of the Government to go for such sweeping action early in the crisis has fuelled a corrosive cynicism about politics and politicians that is making it very difficult to create the national consensus required to deal with our real problems.

Many people are unaware that politicians have actually taken significant pay cuts over the past year. They also forfeited the ludicrous 2007 special award that has been paid to a range of senior public officials, including judges. The salaries of the Taoiseach and his Ministers have been cut by 10 per cent and on top of that all TDs are paying the pension levy that applies across the public service.

Further deep pay cuts for the Taoiseach and his Ministers are expected in the near future. The study commissioned by the Minister for Finance into the comparative pay rates of senior public officials in Ireland and our EU neighbours will undoubtedly show how far out of line Irish public service salaries have grown. Pay cuts for politicians and senior officials are likely to go in tandem. The pity is that the politicians did not take more of a lead but it is certainly a case of better late than never.

TDs in all parties are smarting at the barrage of criticism from the public and the media and, undoubtedly, much of it is unfair. “The mood being fostered by you guys is such that there will soon be a turnstile at the gates of Leinster House and TDs will have to pay to get in,” said one unhappy deputy to a group of journalists.

Some of the media comment has been extravagantly over the top, implying that politicians should be paid very little, if at all. That, of course, would limit politics to rich people or those paid to represent vested interests in the Dáil. Our system of payment for politicians goes back a century to 1909 when the courts debarred the trade unions from funding Labour MPs elected to the House of Commons.

The Liberal government, supported by the Irish Party, then introduced pay for politicians after decades of debate about the issue. Marking the argument for the £400 annual payment in 1909 the then chancellor of the exchequer David Lloyd George said: “It is not a remuneration, it is not a recompense, it is not even a salary. It is just an allowance.”

The term allowance still stands in the UK and Ireland for politicians’ pay. For most of the time since independence the allowance paid to TDs remained relatively low and expenses were effectively used as a way of giving them a reasonable salary.

However, all that changed when the pay and pensions of politicians was tied to that of public servants in the 1990s and both mushroomed out of control.

The decision to put the expenses of TDs and senators on an unvouched basis with no real attendance records and a myriad of payments for everything from committee posts to constituency offices has really brought the system into disrepute.

An unhealthy public mood of hostility to politicians has developed since the bursting of the Celtic Tiger bubble. The Government parties are getting most of the flak and deservedly so, because they presided over the boom. However, there is a requirement on all politicians to show leadership and good example if the country is to get through the economic crisis without serious social unrest.