EXPENSES PAID to politicians and public servants were increased on Tuesday, the day before the Government announced public spending cuts of €500 million would be imposed in the second half of this year.
The expenses paid to public servants and members of the Oireachtas are unvouched for and tax-free, in contrast to expenses paid to workers in the private sector.
The increases were small, varying from 1 per cent to 4 per cent, but they have gone up on July 1st every year for the past decade, sometimes by significant amounts. The new subsistence regime for the public service, which came into operation on July 1st, under Department of Finance circular 14/2008, provides for an overnight rate of €145.32.
Public servants required to be on duty more than 48km (30 miles) from home or headquarters qualify for the overnight rate. In exceptional cases, this is paid to people absent on duty more than 15 miles from their home. TDs and senators are paid expenses under the 15-mile rule.
The unvouched meal allowance for public servants working away from the normal base for more than 10 hours is €44.81, while the rate for five hours is €18.21. This allowance is paid to people who have to work more than 3.1 miles from home or headquarters.
The circular, issued on June 26th and signed by assistant secretary Brendan Duffy, reads: "I am directed by the Minister for Finance to say that the standard rates of subsistence allowance in Ireland have been reviewed in accordance with an agreed recommendation made by the General Council under the scheme of conciliation and arbitration for the Civil Service. "As a result, the Minister has agreed that the rates should be increased, with effect from 1 July, 2008."
Under a separate Department of Finance circular, 13/2008, the mileage allowance for public servants has been increased for cars of 1,501cc engine capacity or above to 126.73 cent a mile for every mile up to 4,000. For every mile after that, 61.01 cent is paid.
Members of the Houses of the Oireachtas had their mileage allowance increased to the same rate as public servants. The untaxed mileage allowance is paid to TDs and senators who live more than 15 miles from Leinster House, regardless of whether or not they drive to the Dáil, take the train or get a lift.
It is calculated on the basis of how many miles they live from Leinster House and is paid for all weeks the Dáil or Seanad is in session, when committees of the Oireachtas are sitting or when they travel to Leinster House for meetings or use the facilities of the House when not in session.
The standard overnight allowance paid to TDs and senators who live more than 15 miles from Leinster House remains at €144.45, although it will be increased in line with the public service increase. Members of the Oireachtas living within a 15-mile radius of Leinster House are paid a tax-free daily allowance of €61.53 to compensate them for the fact that they don't qualify for subsistence.