Councillors get increase in tax-free expenses

An increase in the tax-free expenses that county, city and town councillors can claim each year was announced yesterday by Minister…

An increase in the tax-free expenses that county, city and town councillors can claim each year was announced yesterday by Minister for the Environment Dick Roche.

The Minister also introduced an allowance covering mobile phone expenses as well as improvements to the councillors' retirement gratuity scheme.

The increased expenses will cost about €2.1 million per year, while the increased gratuity and ex-gratia payments will cost €3.2 million in 2009, Mr Roche said.

He announced the changes at an annual Christmas lunch he hosts for councillors from around the State.

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In announcing the allowance towards vouched mobile phone expenses of all councillors in the course of their public duties, Mr Roche said people involved in public life "rely to a huge extent on mobile phones to get their business done".

He rejected calls from councillors for a State-funded pension scheme but introduced an increase in the gratuity scheme for councillors who retire or lose their seats.

The maximum gratuity payable after 20 years' service has been increased, which will mean that county and city councillors will receive a payment of more than €60,000 after 20 years' service from 2000, with pro-rata amounts for borough and town councillors.

Mr Roche also announced that an ex-gratia payment would be made to councillors currently in office on their retirement in respect of pre-May 2000 service.

He said that, including the increases, the average sum of local Government funding devoted to supporting elected members amounted to more than €30 million per year and warned that councillors must ensure that they achieve maximum value for this money. "There may well be comment about the total supports provided to councillors," he said.

"I believe that any fair-minded person who examines the sheer dedication of local councillors to the ongoing development of their town, city or county, will see the justification for the allowances."

The changes will come into effect on January 1st.