The Local Authority Members' Association, which initially put proposals for a councillors' pay package to the Minister for the Environment, yesterday welcomed his decision to increase allowances to city and county councillors by £1,000 annually.
The association also welcomed the gratuities scheme for councillors who are stepping down at the next local elections.
Senator Therese Ridge, association spokeswoman, said they were delighted Mr Dempsey, who made his announcement at yesterday's annual conference of the General Council of County Councils in Tullamore, Co Offaly, had recognised the need for adequate remuneration for local authority members.
But she felt it should be the service of councillors that was rewarded - not whether a member held or lost a seat in the next local elections.
Retiring councillors must have a minimum service of five years and have been in office since the last local elections if they wish to get a gratuity, Mr Dempsey said yesterday.
Also, they must apply in writing before September 15th, 1998, the Minister told the conference.
He said: "Local authorities will determine eligibility, and issue to each applicant written notification of his or her entitlement, and the amount of the gratuity."
The gratuity is a once-off payment. "Under the Act, it cannot apply to service after the 1999 elections," Mr Dempsey said. "A decision to grant a gratuity will stand revoked if a person stands for election to any local authority next June."
The gratuities will become payable immediately following the local elections. The local authorities would notify their members of qualification requirements.
The gratuity will operate on the basis of a unit payment per year of service. In the case of city and county councillors, this unit payment would be £750 for each year of service up to 20 years, and £500 for each subsequent year - subject to an overall limit of 40 years.
Similar agreements at reduced levels would apply for town councillors. "For the future, after 1999, the likely outcome is a modest salary for councillors to be provided for in the legislation which is in preparation to underpin the programme of renewal."
The reasons for the gratuity were twofold, Mr Dempsey said. Firstly, it was to recognise "dedicated service" by individual councillors down the years. Secondly, a key objective was the provision of opportunities, notably for "the young, and women in particular" to come forward and serve in local government.
The scheme is voluntary, Mr Dempsey said. No one would be forced to retire.