Councillors elected to local authorities after the next elections in June 1999 can expect an annual salary of up to £3,000, in addition to increased expenses, Government sources have said.
A "golden handshake" of some £2,000 may also be paid to retiring councillors in an effort to encourage older local government representatives to step down to make way for younger political blood. It is understood that a small pension may also be paid to the retiring councillors.
However, none of the measures will come into effect before the next local government election in June 1999.
The proposals are expected to be in the context of the review of local government reforms envisaged by the Minister for the Environment, Mr Dempsey. The changes are likely to be part of the Local Government Bill, to be published later this year.
Local government elections have not been held for eight years and are due next year, on the same day as polling in the European Parliament elections. There are approximately 1,600 local representatives.
Sources yesterday said it was appropriate that councillors should receive a salary, albeit a small one, given the responsibilities they shouldered. "They frequently make decisions involving far larger sums of money than politicians in Leinster House vote on," one source said.
Meanwhile, the National Youth Council of Ireland has accused the Government of hypocrisy over the decision earlier this month to increases expenses for TDs and senators. While deputies were to get a minimum increase of £5,500 a year, youth organisations were informed by the Minister for Youth Affairs, Mr Willie O'Dea, earlier this week that grant allocations to them would rise by no more than 1.7 per cent.