PROPOSED LEGISLATION to end the arrangement whereby sitting TDs and Senators who have been in government receive ministerial pensions on top of their salaries may be brought before Government for approval today.
Officials from the Department of Finance spent yesterday working on a final draft of the proposal. According to the department, a final decision will be taken this morning on whether or not Minister for Finance Brian Lenihan will propose it at today’s weekly Cabinet meeting.
It comes after all but four of the 28 former ministers replied to a letter from Mr Lenihan setting out proposals to end the scheme and inviting submissions. It is understood that three who did not respond were from Fianna Fáil.
However, the department declined to identify the four politicians in question.
The largest pension, believed to be in the region of €116,000, is paid to former taoiseach Bertie Ahern. Others who are entitled to large pensions include Mary O’Rourke (FF), €53,622; Ruairí Quinn (Labour), €44,171; and Michael Woods (FF), €35,355.
In addition to TDs and Senators, five MEPs are entitled to ministerial pensions. A further three former junior ministers – Tom Kitt, Michael Ahern and John Browne — who were dropped by Brian Cowen when he became Taoiseach in May 2008 have received severance payments but have yet to be paid ministerial pensions.
Mr Lenihan announced in the supplementary budget in April that the arrangement would be discontinued.
However, it quickly became clear that there were legal difficulties – based on the principle of legitimate expectations – with ending the entitlement during the current Dáil.
Acting upon the advice of the Attorney General, Paul Gallagher, the Minister wrote to all the former ministers in the Dáil outlining his plans to phase out the entitlement.
It is understood that once he has engaged in consultation with the affected TDs and Senators, Mr Lenihan can bring in legislation discontinuing the arrangement when a new Dáil convenes after the next election.
He can also introduce a “proportionate” reduction in pension with immediate effect.
Some TDs and Senators suggested a reduction of 25 per cent but the department would not say what proportion it has in mind.
A number of TDs and MEPs have said that they wished voluntarily to surrender their pensions. They include Ms O’Rourke, Fine Gael leader Enda Kenny, Labour leader Eamon Gilmore, Fine Gael TD Jimmy Deenihan and Labour TDs Joan Burton and Liz McManus.
In addition, Dublin MEPs Gay Mitchell and Proinsias De Rossa announced this year that they did not wish to receive their pensions.
A spokesman for Mr Kenny said that he had replied on behalf of the party’s eight former ministers. He stated in the letter that he had proposed that the entitlement should be removed and said it was suggested in the party’s own pre-budget proposals.
Mr Kenny also asked for details of the legal advice that the Government had indicated was preventing the immediate withdrawal of the pension. He also asked for details of the Government’s plans, his spokesman said.
Four former Fianna Fáil ministers, Pat “the Cope” Gallagher, Frank Fahey, Senator Terry Leyden and Séamus Kirk, confirmed that they had replied to the letter.
Mr Gallagher and Mr Leyden said they indicated they would comply willingly with whatever was decided. Mr Kirk said he had suggested a reduction of 25 per cent. Mr Fahey said he had no other comment to make.
