A PLAN to reform the system of unvouched and untaxed expenses paid to TDs and Senators has been under discussion by the Houses of the Oireachtas Commission for the past two years, but, to date, there has been no agreement on a new and more transparent scheme.
The commission, chaired by the Ceann Comhairle, John O’Donoghue, which runs Leinster House, has been considering a report by Goodbody on members’ expenses. This report was first considered by the internal audit committee of the commission in early 2007, but a decision was deferred because of the election last year.
The basic thrust of the proposed new scheme would be to give TDs a large flat-rate payment each year to run their constituency operations and cover the standard expenses involved in the course of their work. After that, they would be entitled to claim expenses for travel, accommodation and meals, but only with receipts, as applies to people in the private sector.
It is believed that there has been considerable resistance to the implementation of the scheme from some TDs and Senators who benefit from the current arrangements, but there is a growing cross-party consensus that action will have to be taken to make the system fairer and more transparent.
At present, members of the Houses of the Oireachtas get paid unvouched and untaxed overnight and mileage allowances if they live more than 15 miles from Leinster House. Mileage is payable regardless of whether or not they drive to the Dáil, take the train or get a lift with a colleague.
The mileage payments to TDs who live in more remote parts of the country puts them at the top of the expenses league in Leinster House. TDs who live within its 15-mile radius get a tax-free daily allowance of €61.53.
The Department of Finance issued a statement yesterday pointing out that TDs received a small increase in their mileage allowance this week in line with public service rates, but they had not benefited from the increase in subsistence payments to public servants.
On the issue of reforming the expenses system for politicians, the 2007 report of the Houses of the Oireachtas Commission, published during the week, revealed that the internal audit committee of the commission had been briefed by its chairman, Tom O’Higgins, and its external member, Greg Sparks, on the Goodbody recommendations.
The two also briefed the committee about the subsequent recommendations of the implementation group appointed by the commission to look into the issue of members’ expenses.
With increased scrutiny of expenses in the European Parliament and the House of Commons, there is a growing feeling among TDs in Leinster House that the time has come to take the heat out of the issue by reforming the system.
The matter was discussed by the members of the Oireachtas commission on February 14th last.
The minutes of the meeting say: “The commission discussed proposals in relation to the rationalisation of members’ allowances. The proposals, based on a downward revision to the Goodbody recommendations and the implementation group recommendations with regard to members’ allowances, which have been the subject of consideration for a couple of years, but excluding any increase to members’ travel and subsistence allowances, were agreed in principle subject to being tabled for formal approval by the commission at its next meeting and subject to receipt of a report on the audit issues arising.”