MINISTERIAL PAYMENTS:FIANNA FÁIL deputy leader Mary Hanafin has said she would be willing to forgo a ministerial severance payment of almost €90,000, but only if the scheme was changed for everybody.
Ms Hanafin said yesterday there was a good argument for changing the scheme which entitles departing ministers, including those remaining as TDs, to a once-off payment.
The seven existing Fianna Fáil Ministers will be entitled to the payment once a new government is elected. At the moment it stands at €88,745.
Speaking on RTÉ’s Morning Ireland yesterday, Ms Hanafin indicated that she would retain the payment, but added that she would be willing to forgo it if the scheme were changed.
She said she “genuinely would be happy” to go with a new scheme.
At the launch of the Fianna Fáil manifesto last Friday, party leader Micheál Martin said he was not willing to relinquish the severance payment.
“The existing severance payments stand and that’s the way it will be,” Mr Martin told reporters.
Minister for Finance Brian Lenihan said yesterday that the arrangement had been in place since 1992 and the payments had been accepted by departing ministers from all parties.
“The payments are taxed and are paid out over a period of 18 months,” said Mr Lenihan. “They are transitional payments.”
The stance was criticised yesterday by Fine Gael’s candidate in Dublin Central, Senator Paschal Donohoe.
He said departing Ministers should pledge to scrap the severance scheme.
“Fianna Fáil cut the minimum wage, blind pensions and disability benefits and then take a fortune in severance pay-offs.”
The other Ministers who are due to receive the payments if Fianna Fáil goes into opposition are Pat Carey, Brendan Smith, Eamon Ó Cuív and Mary Coughlan.
Mr Martin has been entitled to it since he resigned as minister for foreign affairs last month.
Some leading members of the Opposition have benefited from the severance payment in the past. They have included Fine Gael leader Enda Kenny, Richard Bruton and former Labour leader Ruairí Quinn.
Fine Gael last week said it would abolish severance pay for ministers leaving office.
Mr Kenny also committed himself to a modest reduction in the taoiseach’s salary, bringing it down by 7 per cent, from €214,000 per annum to €200,000 per annum.
